Welfare capitalism is the practice of companies providing their employees with good social conditions and benefits. One example of this from the 1920s is the Western Electric Company.
The Western Electric Company offered its employees settlement houses to live in. When female employees complained that life in the settlement was not serving their interests, the company introduced activities that would change this, such as baseball. In the late 1920s, welfare capitalism suffered because of the Great Depression. This meant that fewer employees benefited from educational programs and other welfare capitalist measures. However, it did reemerge after WWII when Sears, Roebuck & Co. introduced stock shares for employees.Learn More
Capitalism refers to an economic system featuring private corporations and individuals maintaining ownership of a society's means of producing, distributing and exchanging wealth; mercantilism refers to a practice that predates capitalism, in which towns, regions and countries set up imbalances in trade with one another. Capitalism is designed to set up open competition, but mercantilism is designed to establish a winner among losers.Full Answer >
The primary difference between capitalism and socialism is that capitalism promotes innovation and personal pursuits, while socialism promotes societal fairness and equality. A capitalist economy accepts that income polarity is a reality in order to motivate high performers to develop new ideas and products for personal gain. A socialist economy tries to balance wealth through policies that ensure each person has an adequate amount of income, food and supplies.Full Answer >
One of the major drawbacks of capitalism is that it allows one or a few companies to develop dominance in particular industries by achieving significant advantages. Capitalism also creates inequality of wealth as individual pursuits are encouraged, which then contributes to social inequality. Economic cycles also tend to have a significant impact in capitalist markets.Full Answer >
Managerial capitalism posits that dominant CEOs would no longer run businesses but instead hired employees would run the businesses as a new class of professional CEOs. Adolf A. Berle and Gardiner C. Means first make this proposal in their 1932 treatise "The Modern Corporation and Private Property" in which they endorse the idea that owners turn companies over to professional managers.Full Answer >