Began in the 1800's as a political movement in response to injustices of industry and the exploitation of workers in Europe: Low wages, long hours, and unsafe conditions. Economic system in which the most important business producing goods are owned by the government rather than individuals. Socialist governments typically own: railroads, airlines, hospitals, banks, utility companies, mining, oil companies, and other major industries. Unlike communism, socialism encourages private ownership of small businesses. Economists sometimes refer socialist economies as "free market socialism" because their economies do not involve state planning.