Liberal socialism is a socialist political philosophy that includes liberal principles such as including both private property and social ownership in capital goods, supporting a mixed economy, and believing that liberty and equality are mutually dependent on each other. The movement gained strength in the United Kingdom and Italy during the 19th and 20th centuries, with John Stuart Mill theorizing that worker-controlled enterprises could work together with private enterprises while existing under a free representative government and a fair social organization. During the 1930s, the Social Democratic Party of Germany transitioned from socialism to liberal socialism, and Italian socialist Carlo Rosselli founded the Giustizia e Liberta liberal socialist movement in 1929 with the goal of creating a democratic republic and overthrowing the fascist dictatorship.

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