Social democracy advocates for a political system that balances social welfare and individual freedoms through democratic means. It aims to reduce economic inequalities while preserving a market economy, emphasizing policies like healthcare, education, and workers' rights. In contrast, socialism typically advocates for the collective or state ownership of resources and means of production. While both ideologies seek to promote social justice, social democracies function within a capitalist framework, allowing for democratic governance, whereas socialism often entails more radical changes to societal structures and economic systems.