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Democratic capitalism, also referred to as market democracy, is a political and economic system that integrates resource allocation by marginal productivity (synonymous with free-market capitalism), with policies of resource allocation by social entitlement.[1] The policies which characterise the system are enacted by democratic governments.[1]
Democratic capitalism was implemented widely in the 20th century, particularly in Europe and the Western world after the Second World War. The coexistence of capitalism and democracy, particularly in Europe, was supported by the creation of the modern welfare state in the post-war period.[2] The implementation 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 right to private ownership of property.
Catholic social teaching offers support for a communitarian form of democratic capitalism with an emphasis on the preservation of human dignity.
- ^ a b Streeck, Wolfgang (October 2011). "Wolfgang Streeck, The Crises of Democratic Capitalism, NLR 72, September–October 2011". New Left Review (71): 5–29. Retrieved 2020-05-20.
- ^ Muller, Jerry Z. (March 2013). "Capitalism and Inequality". Foreign Affairs.