The confusion is massive here...
The Difference Between Socialism and Communism
Liberals want the decision to be spread out among more people, preferably everyone; conservatives want the decision to be made by as few people as possible, preferably just one.
Socialism,
as envisioned by Marx and Engels was, ideally, a where everyone would share the benefits of industrialization. Workers would do better than in the English system at the time (The Communist Manifesto was published in 1848) because there were more workers than bosses and the majority would rule. As a purely economic system, socialism is a lousy way to run a large scale economy. Socialism is not a political system, it's a way of distributing goods and services. At their ideal implementation, socialism and laissez faire capitalism will be identical as everyone will produce exactly what's needed for exactly who needs it. In practice, both work sometimes in microeconomic conditions but fail miserably when applied to national and international economies. And they fail for the same reason: Human perversity. Too many people don't like to play fair, and both systems only work when
everyone follow the same rules.
Socialism is liberal. More people (preferably everyone) have some say in how the economy works. Democracy is liberal. More people (preferably everyone) have some say in how the government works. "Democracy," said Marx, "is the road to socialism." He was wrong about how economics and politics interact, but he did see their similar underpinnings.
Communism is conservative. Fewer and fewer people (preferably just the Party Secretary) have any say in how the economy works. Republicans are conservative. Fewer and fewer people (preferably just people controlling the Party figurehead) have any say in how the government works. The conservatives in the US are in the same position as the communists in the 30s, and for the same reason: Their revolutions failed spectacularly but they refuse to admit what went wrong.
A common mistake is to confuse Socialism, the economic system, with Communism, the political system. Communists are "socialist" in the same way that Republicans are "compassionate conservatives". That is, they give lip service to ideals they have no intention of practicing.
Communism, or "scientific socialism", has very little to do with Marx. Communism was originally envisioned by Marx and Engels as the last stages of their socialist revolution. "The meaning of the word communism shifted after 1917, when Vladimir Lenin and his Bolshevik Party seized power in Russia. The Bolsheviks changed their name to the Communist Party and installed a repressive, single-party regime devoted to the implementation of socialist policies." (quote from
Encarta.). Those socialist policies were never implemented.
Whereas Marx saw industrialized workers rising up to take over control of their means of production, the exact opposite happened. Most countries that have gone Communist have been agrarian underdeveloped nations. The prime example is the Soviet Union. The best thing to be said about the October Revolution in 1917 is that the new government was better than the Tsars. The worst thing is that they trusted the wrong people, notably Lenin, to lead this upheaval. The Soviet Union officially abandoned socialism in 1921 when Lenin instituted the
New Economic Policy allowing for taxation, local trade, some state capitalism... and extreme profiteering. Later that year, he
purged 259,000 from the party membership and therefore purged them from voting (shades of the US election of 2000!) and fewer and fewer people were involved in making decisions.