Don't the europeans label themselves socialists?

And I think what you meant to say is Totalitarian Socialistic state.
But even Russia had aspects of production and distribution that weren't controlled by the State. Obviously there was it's large black market. And had you some farmers growing their "own food" and bartering. And there was trade- America shipped huge amounts grain to Russia. And of course the Soviet elites bought lots of stuff from outside the country. So even the Soviet Union doesn't fit your definition of socialist. Now when you get a country as dirt poor as China was, you might get a bit closer to your definition, but of course it still was not very pure. I guess N Korea with sanctions on it gets pretty close to it. But I think everyone will simply starve to death if everything was actually controlled by the state.

Those are really good points, although I personally have always called these European countries 'social democratic', which is an older term (which I don't know if it's still used - I don't talk politics much with people these days). But yes they do call themselves 'socialist' - and so did the USSR. And by my understanding of the word, neither of them really are, as you point out - for different reasons: Europe is really 'welfare capitalist' (or 'social democratic'), and the USSR 'totalitarian socialist'.

However, socialism as I understand it really is closer to the USSR than to Europe, and by that I'm also essentially agreeing with Tom and co. - 'socialism' has always meant 'totalitarian socialism' in practice, and may well do so in principle too. I have yet to see how it could be run on completely democratic grounds, and as the years pass I also have an increasing distrust and dislike of over-ambitious political ideology. I opt for moderation - so long as half-decent social and civic services can be provided by any means, and we don't live in one huge shopping mall, I'm happy. Trading, and wealth-creation (hence capitalism) will always have a place in a healthy functioning society. I just don't want it to dominate in the way it does today.