Why Socialism? | Albert Einstein | Monthly Review

Simply put, democratic socialism advocates for a transition (whether revolutionary or reformistic) from the capitalist mode of production to the socialist mode of production accompanied by a democratic system, whereas social democracy advocates for a "better" version of capitalism achieved through reform of the current status quo that allows for government ownership of (mostly) non-profitable parts of society as well as social security nets and welfare paid for by raised taxes.

The last two are thrown around by politicos like they’re handing out free candy

In fact, economic life pursued under these first four rules rapidly became so disorganized that within four years of the 1917 revolution, Soviet production had fallen to 14 percent of its prerevolutionary level. By 1921 Lenin was forced to institute the New Economic Policy (NEP), a partial return to the market incentives of capitalism. This brief mixture of socialism and capitalism came to an end in 1927 after Stalin instituted the process of forced collectivization that was to mobilize Russian resources for its leap into industrial power.

Communism VS Socialism VS Fascism VS Capitalism …

This story speaks volumes about the problem of a centrally planned system. The crucial missing element is not so much “information,” as Mises and Hayek argued, as it is the motivation to act on information. After all, the inventories of moleskins did tell the planners that their production was at first too low and then too high. What was missing was the willingness—better yet, the necessity—to respond to the signals of changing inventories. A capitalist firm responds to changing prices because failure to do so will cause it to lose money. A socialist ministry ignores changing inventories because bureaucrats learn that doing something is more likely to get them in trouble than doing nothing, unless doing nothing results in absolute disaster.