What is Rhenish capitalism?
A system of capitalism characterized by non‐market patterns of coordination by economic actors and extensive state‐regulation of market outcomes. The term Rhenish Capitalism was popularized by Michel Albert in his book Capitalism vs. Capitalism (1993) and is central to recent research on ‘varieties of capitalism’.
What is the German Mittelstand?
Mittelstand commonly refers to a group of unique businesses in German-speaking countries (and Britain) which are very successful, and are usually capable of surviving economic turbulence. Generally small and medium-sized enterprises, they differ from regular SME’s.
What is the social market economy in Germany?
The social market economy (SOME; German: soziale Marktwirtschaft), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social capitalism, is a socioeconomic model combining a regulated free market capitalist economic system alongside social policies that establish both fair competition within …
How is capital used in the capitalist system?
Capital is wealth—that is, money and goods—that’s used to produce more wealth. Capitalism is practiced enthusiastically by capitalists, people who use capital to increase production and make more goods and money. Capitalism works by encouraging competition in a fair and open market. Its opposite is often said to be socialism.
What is the rationale of the theory of capitalism?
Theory of Capitalism. Capitalism is a system of largely private ownership that is open to new ideas, new firms and new owners—in short, to new capital. Capitalism’s rationale to proponents and critics alike has long been recognized to be its dynamism, that is, its innovations and, more subtly, its selectiveness in the innovations it tries out.
How is capitalism a system of private ownership?
Capitalism is a system of largely private ownership that is open to new ideas, new firms and new owners—in short, to new capital.
What are the characteristics of a capitalist economy?
Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system and competitive markets.