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Socialism is an economic system that puts emphasis on collective ownership of the production resources and relies on the state or the worker's council to be the mouthpiece of society on how these resources will be managed and controlled. The extreme form of socialism has little or no regard at all for civil liberties, thus citizens do not enjoy the equal right to representation and the equal right to hold office, among others.

Democracy, on the other hand, is a political system that promotes the freedom and the equal right of an individual to self-development. People in a democratic society either directly government themselves (direct democracy) or elect some individuals to whom the power to govern society is delegated.