What Is Social Market Capitalism?
By Anthony J. Mountjoy | Mon, 18 Jul 2016 15:15:00 EST
A Free and Equitable Society being the natural and proper result of Free Enterprise is encouraged by Capitalism and Social Market Capitalism especially. The difference is more one of emphasis. With Social Market Capitalism we apply all the same common sense values of Free Market Capitalism, but we make the additional claim that a Free Market IS a Social Market tautologically. This is to facilitate Collaboration which is necessary for Free Enterprise
. It's important to counter the false Socialist/Communist narrative that claims the social space as their own. Collaboration is the highest expression of Society therefor nothing so far discovered is more social than Capitalism.
The most primal and important difference to understand right away is the focus on Capitalization of a Free Market Opportunity rather than Controlling Capital (as in money) Interests. Therefore Social Market Capitalism produces a framework optimized toward collaboration and production rather than profit as expressed through speculation on relative value and institutional authority. In other words, with Social Market Capitalism, the results help everyone, most of all those involved with the production. The essential reverse to the distribution dominant result of Free Market Capitalism. The sales exchange is still import, as with traditional forms of Capitalism, but it's less important in terms of effective returns than the principals of reliable production because this framework benefits less from the gambler's prerogative; which is more effective for simple, more opportunistic exchanges and less so for a stable Enterprise and its hard won trade agreements.
We posit that there is nothing more ANTI-social than Socialism ultimately expressing its metastasized forms which we call Communism or Fascism, etc. This is because the socialist mathematics holds as its final point of destination the elevation of a tiny elite insider; person, expert, ideology, company, or class. Meanwhile it really only socializes the risk and labour. Like every Casino you've ever visited, socialist schemes serve the few at the cost of the many.
Having grown into an economic cancer of such magnitude we've already endured at least three global financial meltdowns. The first in 1929 called Black Tuesday then in 1987 called Black Monday then in 2001 called Dotcom and then in 2008 called Housing Bailout. All of these were bubbles and as expected...the frequency is accelerating. It's likely the recent bailouts only made this latest one worse and we are still in it. Today's economists suggest a third crash is imminent, possibly within just a few years, either way.
Socialism likes to assume the credit for the results of Social Market Capitalism. For example, Police, Firemen, Universal Healthcare, and other public interests. Public interests are the result of years of dedicated Collaboration and social investment. In-spite of crippling interference by promoters, fair weather friends, politicians, investors, and other "interested parties", its effectiveness in these areas prove the value of Social Market Capitalism to the common good.
The Constraint Of A Real Problem Keeps The Socialist From Transforming Into A Communist...So Solving Problems With Socialism Is Risky...Without Another Problem...And Another...
In these particular cases we see two primary distinctive traits that give away the game. The first trait that disqualifies Socialism and credits Social Market Capitalism is the "Public Interest", not "Special Interest" aspect of each of these fields. The simplest example of "Public Interest" is the Free Market Exchange at the root of Capitalism suggesting it's a core feature of the law of compensation. The automatic production that occurs when an exchange is free and voluntary is a public interest in itself required for all others. So we can say it's something like the most primordial "Public Interest".
The other most obvious trait that shows the presence of working Capitalism, is that without exception, these, like all genuine public interests, bring ALL parties toward positive production hence its total value to a coherent society. [Small digression: A comparison can be made here to a country's borders, being a public interest that literally helps everyone. So we know the motives of those advocating a border-less world; malice or misled.] Applying Capitalism to the "Public Interest" is always a good deal. If its not, then stop it, you've been tricked by Socialists into serving their "Special Interest".
There is no single group that benefits from police or firemen while another does not. For example, Black Lives Matter are constantly called out for their misinformation and false narratives about occasional, though routine, police abuse. Yet, every single day police protect everybody they can. The areas most hit by crime and violence would be even worse if not for what the police bravely do every day at great personal risk.
That doesn't show the limits of police, so much as the difficulty of the job, and how amazing they are for doing it. Because they want to and don't have to! That's Capitalism working toward the public interest to keep costs down and production up. Voluntary Exchange. That's a Social Market. It's an important distinction to understand, because so many misspeak and credit Socialism where it doesn't deserve it and socialist movements feed off that implied legitimacy.
The only thing Socialists deserve credit for, is somehow managing to pull the wool over all our eyes for so long.
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