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What is social democracy?

Social democracy is a political ideology that supports a market economy combined with a strong welfare state, public services, workers' rights and progressive taxes. It aims to reduce inequality through democratic reform rather than revolution. It is closely linked with Labour parties and Nordic countries such as Sweden and Denmark.

Social democracy grew out of the socialist movement in the late 19th century. Unlike revolutionary socialists, social democrats chose to work through elections and parliaments. Over time most accepted that markets should remain, but argued they must be regulated and their gains shared through taxes and public services. They saw elections as the route to change. In Britain, this tradition shaped the early Labour Party.

The model reached its peak after 1945. In Britain, the Attlee government created the NHS, expanded social security and nationalised key industries. Scandinavian countries built generous welfare states with high taxes and strong trade unions. Collective bargaining, free education and universal healthcare became hallmarks of the approach. Full employment was a central goal of governments of both parties until the 1970s.

Today the Labour Party is the main social democratic party in the UK, alongside parts of the Liberal Democrats and the SNP. Social democrats face hard questions about paying for ageing populations and competing in a global economy. Some have moved towards the centre, while others want bolder public investment and ownership. The SNP describes itself as social democratic, as does Plaid Cymru.

Where you've seen it

Sweden, Denmark and Norway for much of the post-war era, West Germany, and the post-1945 UK consensus.

In the UK today

It shapes Labour's mainstream tradition and much Liberal Democrat and SNP thinking, and appears whenever parties argue for higher spending on public services funded by tax.

The view from the left

Many on the left see social democracy as the most practical route to a fairer society. Some say it does not go far enough.

The view from the right

The right often argues social democracy leads to high taxes, a large state and weaker growth.

Britain is split. Now you decide.

In Population Decides you can take the matching quiz to see whether your views fit social democracy or another tradition.

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Common questions

Is social democracy the same as socialism?

Not quite. Social democrats accept markets, while many socialists want wider public ownership.

Is Labour a social democratic party?

Labour is generally described as a social democratic or democratic socialist party.

Which countries are social democracies?

Nordic countries such as Sweden, Denmark and Norway are often cited as examples.

What does social democracy want to do with the market economy?

Keep it, but use taxes and services to cut inequality. Social democracy keeps a market economy. It uses taxes, public services and workers' rights to reduce inequality.

How does social democracy aim to change capitalism?

Gradually through elections. It aims to change capitalism gradually through elections rather than replace it.