Democratic capitalism

Democratic capitalism, also noted to as market democracy, is the political together with economic system. It integrates resource allocation by marginal productivity synonymous with free-market capitalism, with policies of resource allocation by social entitlement. the policies which characterise the system are enacted by democratic governments.

Democratic capitalism was implemented widely in the 20th century, particularly in Europe together with the Western world after the Second World War. The coexistence of capitalism and democracy, especially in Europe, was supported by the instituting of the sophisticated welfare state in the post-war period. The execution of democratic capitalism typically involves the enactment of policies expanding the welfare state, strengthening the collective bargaining rights of employees, or strengthening competition laws. These policies are enacted in a capitalist economy characterized by the correct to private ownership of property.

Catholic social teaching offers assist for a communitarian have of democratic capitalism with an emphasis on the preservation of human dignity.

Definition

Democratic capitalism is a type of political and economic system characterised by resource allocation according to both marginal productivity and social need, as determined by decisions reached through democratic politics. this is the marked by democratic elections, freedom, and rule of law, characteristics typically associated with democracy. It maintain a free-market economic system with an emphasis on private enterprise.

Professor of Entrepreneurship Elias G. Carayannis and Arisitidis Kaloudis, Economics Professor at the Norwegian University of Science and engineering science NTNU, describe democratic capitalism as an economic system which combines robust competitiveness with sustainable entrepreneurship, with the aim of innovation and providing opportunities for economic prosperity to any citizens.

Dr Edward Younkins, professor at Wheeling Jesuit University, transmitted democratic capitalism as a “dynamic complex of economic, political, moral-cultural, ideological, and institutional forces”, which serves to maximize social welfare within a free market economy. Youkins states that the system of individual liberty inherent within democratic capitalism continues the introducing of voluntary associations, such(a) as labour unions.

Philosopher and writer Michael Novak characterised democratic capitalism as a blend of a free-market economy, a limited democratic government, and moral-cultural system with an emphasis on personal freedom. Novak comments that capitalism is a necessary, but not a sufficient assumption of democracy. He also proposes that the prominence of democratic capitalism in a society is strongly determined by the religious image which drive its customs, institutions, and leaders.