In a socialist society, the "means of production" (i.e., people's places of employment) are owned "socially" rather than "privately." For instance, rather than a tycoon owning a factory (i.e., "capital") to make private profit (i.e., "capital accumulation") and using the factory's employees as "inputs" or "fungible resources" to maximize those returns, the workers themselves (possibly in collaboration
Cartoonish example, without leaving markets behind:
- Capitalism: For building a lemonade stand, I give Jack and Jill $100. I buy a lot of lemons from someone. If you make and sell lemonade, I'll pay you and five of your pals $7 each hour. You are renting me your time so that I may direct you and pocket the profit generated by your effort. Even though I'm not doing any of the labor, this business is my private property, and I may manage it anyway I choose. When I have enough money, I may hire someone else to construct and staff a second lemonade stand so that I can earn even more money.
- Socialism: You advise me to go attack a cactus when I wave green pieces of paper in your way. You, Jill, Jack, and your other five buddies decide to start a cooperative lemonade shop. The rest of you will create and sell the beverages, while Jack and Jill will handle construction and upkeep. You combine your funds to purchase the lemons. Then, you and your partner determine how to run your business and what to do with your earnings. When you finally open a second lemonade stand, you won't be recruiting people to work for you; rather, you'll be adding partners who will collaborate with you and contribute equally to operating the business.
⇒ You keep your person when you sell your stuff. However, when you sell your labor, you also sell yourself, giving up your freedom and becoming a slave to vast institutions run by a wealthy elite that threatens to exterminate anybody who challenges their right to exploit and persecute people. (Lowell Mill Girls)
Anarchists are socialists who oppose a "state" (a centralized government, elite ruling classes, national borders, political parties, etc.) and believe that people should essentially govern themselves without coercive top-down authority (ancaps excluded, since no one considers them anarchists except other ancaps). They also consider the employer-employee relationship to be oppressive, which is why they are socialists. Some socialists desire a society without markets and money, which makes them communists. Other socialists favor a market-based society (like mutualists).