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It should be noted, however, that many of those who describe themselves as "socialists" often argue that socialism necessarily implies democracy, thus making "democratic socialism" a redundant term. The fact that one specific movement is called "democratic socialism" does not mean that other socialist movements cannot be equally democratic.

Democratic socialist parties appeared before the First World War, when no single country could be described as democratic in the modern use of the term, because of electoral discrimination on the basis of gender, race or wealth. What distinguished democratic socialists from others was a willingness to work through a parliamentary democracy (even if people were still disenfranchised) to both improve the lives of working classes and win the vote, rather than resort to revolution (the overthrow of the state).

Because Democratic Socialism is a political movement, no single source of inspiration can be said to be authoritative. Thinkers, writers and activists such Robert Owen, Karl Marx, and Sidney and Beatrice Webb can all be said to have contributed to "democratic socialist philosophy". However, popular movements such as the growth of trade unionism, the Chartists and the Labour Party (UK)The Labour Party is a centre- left or social democratic political party in Britain (see British politics), and one of the United Kingdom's three main political parties. Under its leader Tony Blair it won a landslide in the 1997 general election, and forme (a "democratic socialist party" according to the first line of its constitution) or the SPD in Germany ( Sozialdemokratische Partei Deutschlands), are equally critical to understanding Democratic Socialism.

The terms "democratic socialism" and " social democracy" have often been used interchangeably, and, indeed, they could be considered synonymous until recently. Today, however, they denote two different things: Social Democracy is more centrist and supports a broadly capitalistCapitalism generally refers to a combination of economic practices that became institutionalized in Europe between the 16th and 19th centuries. Exactly which historic and current practices are considered part of "capitalism" varies among users of the term system, with just a few socialist elements to make it more equitable and humane. Meanwhile, Democratic Socialism is more left-wing and it supports a fully socialist system, seeking to establish that socialist system by gradually reforming capitalism from within. Thus, Democratic Socialism is an evolutionary socialistEvolutionary socialism is a form of socialist theory which was originally developed by Eduard Bernstein. Evolutionary socialism argues that socialist goals can be gradually completed via democracy, trade unions and reform, rather than by violent revolutio movement.

Democratic socialists and social democrats both typically advocate at least a welfare stateThere are three main interpretations of the idea of a welfare state # A welfare state is a type of government that assumes the primary responsibility for the individual and social welfare of its citizens. The welfare state refers to the provision of welfa, although social democrats, being influenced by the Third Way, are now less committed to this. Democratic socialists maintain a commitment to the re-distribution of wealth and the nationalisation of major industry, and some believe in a planned economy; these are all concepts which social democrats have largely abandoned. In addition, many democratic socialists retain a Marxist analysis (though sometimes a reformist one), while social democrats reject Marxism.

People or groups who describe themselves as democratic socialists within mainstream social democratic parties and movements generally represent the left wing of those parties and movements. In some cases, democratic socialists have broken off from the social democrats to form their own parties. However, in other parties (such as the Canadian New Democratic Party), democratic socialists and social democrats continue to co-exist.