What is social capitalism?
Social capitalism is an economic philosophy that mixes the sensitivity of capitalism on the free market with the good reach of socialism. It fundamentally rejects the idea that society must be either socialist or capitalist, instead suggests that a great contribution to the free market can be obtained through government management of the Macro economy. A relatively new concept that gained popularity in the 21st century, supporters of social capitalism suggest that there are already many social capitalist systems that serve as examples of the strong potential built into this theory.
In traditional capitalism, most of the events are dictated by waxing and decreasing the market. Governments should have the least possible market involvement to leave the freedom of entrepreneurs, investors and employees intact. In this model, a profit is a motivating factor for work at all levels of society. The disadvantage of capitalism is that it can create a system in WMno prospering and surviving, with another class who cannot do. Traditional chapelLism tends to rely on the survival of the most suitable and richest, regardless of whether this wealth or condition is the result of natural talent or inherited position.
On the other hand, socialism supports its own equality of all people and uses strict government control to attempt to promote its own capital. In the vision of Karel Marx, the father of communism, the ideal socialist society would provide all people equal opportunities, the same wealth and instill a sense of good good for personal progress. Unfortunately, in practice, this theory tends to create a system mature for corruption, in which government members have great control of all other citizens. Since socialism does not exist in a vacuum, it is also possible for private entrepreneurs to create personal happiness in international or black market stores, exhausting the illusion of the same chances for all.
Social capitalism is trying toChat the best properties of each system and at the same time dampen the disadvantages of both. Programs that meet the standard of social capitalism include things like government control of wages and working hours; Measures that protect employees at a lower level without being excessively suppressed by business practice. Using the involvement of the Government to increase the earnings potential and the standard of living of the lowest economic brackets, social capitalism actually seeks to strengthen the market participation and the potential of market profit.
In most theories of social capitalism, which are by no means in a universal agreement, the involvement of the government is proportionally associated with the economic position of the individual. Individuals with medium income and rich will feel the least effect of macroeconomic policies because they are supported by much more practice market. Individuals with lower income would have the advantage of government social programs such as cheap medical care or work -based training programs because the capitalist free market withE necessarily less deals with their survival. By helping people in lower economic brackets, the government that follows the principles of social capitalism would have hoped that these individuals will strengthen the upper layer of society where they are able to survive in the free market economy.