Social Market Economy

One of the economic models that prevailed after the Second World War, and spread in most European countries, and this model was linked to economic success in Germany, and this economy was proposed by Germans Alfred Rammach and Ludwig Earhart, and this model is considered a social development system that meets the aspirations of others in the conditions of capitalist globalization, And it works to activate growth and development by specialization, production and labor productivity, the principle is based on the state’s exercise of its role in ensuring equal opportunities, not only in obtaining jobs, but in qualifying for those jobs in terms of obtaining the necessary education and training.

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Features of the Social Market Economy

  • Government control of the means of production of all kinds
  • Absolute capitalism that does not allow the state to interfere in the market and the economy.
  • The government encourages people to start small businesses.
  • Encourages and allows individuals to enter the competitive market.
  • Maintaining peace and social security, even in difficult economic circumstances
  • The scarcity of class conflicts between workers and employers.
  • Provides basic and poor workers and groups with basic services such as education, health, housing, sanitation, and basic social needs, and facilitates individuals to provide for these basic needs.

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Social Market Economy Patterns

Democratic Social Style

Countries in these patterns have a direct pivotal role in securing social risks and cover social needs arising from disease, aging, and unemployment, such as countries like Sweden and others.

Liberal Style

By securing the minimum social needs, it is left to the productive and private companies and institutions to secure more than the minimum social needs, such as Britain.

Collaborative Style

The institutions are represented by trade unions and employers unions and manage and finance parties related to productivity and the government does not interfere with the cooperative style except within the large family numbers The poorest slides, this style is very common in France and Germany.

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