What does "socialism" refer to in an economic context?

In an economic context, socialism refers to a system where the means of production—such as factories, land, and resources—are owned or regulated by the state or the public as a whole. This means that rather than relying solely on private ownership and free markets, socialism seeks to distribute power and resources more evenly across the society, often with the goal of reducing inequality and providing basic needs to all members.

Under socialism, the government typically plays a significant role in the economy, either by directly managing production or by regulating private enterprises to ensure that they serve the public interest. This approach contrasts sharply with economic models that prioritize private ownership and market forces, where individuals own property and businesses compete in a free market system. By focusing on collective ownership or oversight, socialism aims to promote social welfare and address issues stemming from capitalist practices, such as income disparity and lack of access to essential services.