Theory, Evidence, and Policy
Chapter 9: Social Capitalism: A New Social Structure for Capital Accumulation
9.1 Introduction In this chapter1 we start from a Keynesian macroeconomic model of advanced capitalist societies, Section 9.2, and brieﬂy summarise on this basis the functional chains and their stability properties that characterise the working of such economies from the Keynesian perspective. We do so in order to provide a theoretical description of the status quo of such societies, which will then be contrasted with an ideal model of a ﬂexicurity economy, in Section 9.5, as one central result of the European debate on the welfare state. This type of economy we then extend towards our conceptualisation of a society which is built on the principles of what we shall call ‘social capitalism’ and its three pillars, ﬂexible and socially oriented labour market institutions, a coherent educational system and on this basis the formation of democratic elites and the change in property rights this implies, see Section 9.6. The current crisis and its impact in particular on the Eurozone indeed provides an important opportunity in this regard, where central institutions are in question and where therefore openness for new ideas can be expected. An ideal construction of ‘social capitalism’ as in Section 9.6 is indeed needed before compromises with the actual status quo of given capitalist economies should be sought and investigated, as it is suggested by the word ‘compromise’. Without an ideal, against which potential and actual reforms in countries like Denmark can be investigated, there is a lack of a coherent theoretical structure against which one can...
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