Social policies in the context of "Social market economy"

⭐ In the context of the social market economy, how are social policies fundamentally integrated with the principles of a free-market capitalist system?

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⭐ Core Definition: Social policies

Some professionals and universities consider social policy a subset of public policy, while other practitioners characterize social policy and public policy to be two separate, competing approaches for the same public interest (similar to MD and DO in healthcare), with social policy deemed more holistic than public policy. Whichever of these persuasions a university adheres to, social policy begins with the study of the welfare state and social services. It consists of guidelines, principles, legislation and associated activities that affect the living conditions conducive to human welfare, such as a person's quality of life. The Department of Social Policy at the London School of Economics defines social policy as "an interdisciplinary and applied subject concerned with the analysis of societies' responses to social need", which seeks to foster in its students a capacity to understand theory and evidence drawn from a wide range of social science disciplines, including economics, sociology, psychology, geography, history, law, philosophy and political science. The Malcolm Wiener Center for Social Policy at Harvard University describes social policy as "public policy and practice in the areas of health care, human services, criminal justice, inequality, education, and labor". Social policy might also be described as actions that affect the well-being of members of a society through shaping the distribution of and access to goods and resources in that society. Social policy often deals with wicked problems.

The discussion of 'social policy' in the United States and Canada can also apply to governmental policy on social issues such as tackling racism, LGBT issues (such as same-sex marriage) and the legal status of abortion, guns, euthanasia, recreational drugs and prostitution. In other countries, these issues would be classified under health policy and domestic policy.

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👉 Social policies in the context of Social market economy

The social market economy (SOME; German: soziale Marktwirtschaft, German pronunciation: [zoˌt͡si̯aːlə ˈmaʁktˌvɪʁtʃaft] ), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social capitalism, is a socioeconomic model and ideology combining a free-market capitalist economic system with social policies and enough regulation to establish both fair competition within the market and generally a welfare state. It is sometimes classified as a regulated market economy. The social market economy was originally promoted and implemented in West Germany by the Christian Democratic Union under Chancellor Konrad Adenauer in 1949 and today it is used by ordoliberals, social liberals and social democrats alike. Its origins can be traced to the interwar Freiburg school of economic thought.

The social market economy was designed to be a middle way between laissez-faire forms of capitalism and socialist economics. It was strongly inspired by ordoliberalism, which was influenced by the political ideology of Christian democracy. Social market refrains from attempts to plan and guide production, the workforce, or sales but support planned efforts to influence the economy through the organic means of a comprehensive economic policy coupled with flexible adaptation to market studies. Combining monetary, credit, trade, tax, customs, investment, and social policies, as well as other measures, this type of economic policy aims to create an economy that serves the welfare and needs of the entire population, thereby fulfilling its ultimate goal.

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Social policies in the context of Nordic model

The Nordic model comprises the economic and social policies as well as typical cultural practices common in the Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden). This includes a comprehensive welfare state and multi-level collective bargaining based on the economic foundations of social corporatism, and a commitment to private ownership within a market-based mixed economy – with Norway being a partial exception due to a large number of state-owned enterprises and state ownership in publicly listed firms.

Although there are significant differences among the Nordic countries, they all have some common traits. The three Scandinavian countries are constitutional monarchies, while Finland and Iceland have been republics since the 20th century. All the Nordic countries are however described as being highly democratic and all have a unicameral legislature and use proportional representation in their electoral systems. They all support a free market and universalist welfare state aimed specifically at enhancing individual autonomy and promoting social mobility, with a sizable percentage of the population employed by the public sector (roughly 30% of the work force in areas such as healthcare, education, and government), and a corporatist system with a high percentage of the workforce unionized and involving a tripartite arrangement, where representatives of labour and employers negotiate wages and labour market policy is mediated by the government. As of 2020, all of the Nordic countries rank highly on the inequality-adjusted HDI and the Global Peace Index as well as being ranked in the top 10 on the World Happiness Report.

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