Social capitalism is a new market-based economic system. It addresses the problems inherent in both capitalism and socialism. Traditional capitalism often overlooks human and environmental interests and the central planning of traditional socialism impedes a rational allocation of resources.
In social capitalism, governments create greater profit opportunities for entrepreneurs by investing in desirable future industry and technologies (like rewable energy).
The essence of social capitalism is that markets work best and output is maximized through sound social management of the macroeconomy. Social capitalism posits that government regulation, and sponsorship of markets, can lead to superior economic outcomes.
Government investment in the green economy or securities regulation are examples of social capitalism. Regulation should be as limited as possible, however, regulation is needed to ensure that individuals and corporations do not exploit markets for personal gain at the expense of market growth, economic stability and environmental sustainability.
For business, social capitalism is the ability to create positive, healthy development. Businesses practicing social capitalism give back to society while creating an environment that is conducive to profit maximization.
Social capitalism is not hostile to free markets or the private ownership of property. Instead, social capitalism recognizes the unique success of capitalism, particularly under appropriate social supervision. Social capitalism thus seeks to create a balanced approach to business and the role of the state, with a view to optimizing the business environment for maximum sustainable economic growth.
Related Posts
Creative Capitalism: Market-Based Social Change
Consumer Demand for Green
The Greening of Cyberspace
New Year’s Resolutions for a More Sustainable World in 2010
Hope for the Holidays
The New Normal
The New Normal and Sustainability
The New Normal and Implications for Business
Carrotmobs: Adding Incentives to the Consumer Arsenal
The Future is Green
Green’s Coming of Age
People Remain Loyal to Green Even in an Economic Downturn
Green Drivers
Green’s Bottom Line: Staying Competitive in Volatile Economic Times
Green Stimulus and Free Markets
Creating a Sustainable Future
An Open Model of Innovation
Silencing Earth Day Critics
