‘Social Capitalism’ may be what was operational in Germany before World War II. It was generally referred to as ‘social market economy’ and differed from the anglo-saxon version on a number of levels.
Within the framework of Dr. Yunus’ social objectives, ‘social capitalism’ would address health, education, poverty and pollution.
These are addressed by governmental institutions which have less and less public funds available and are eroded by the financial powers of multi-nationals.
For ‘social capitalism’ to be an effective doctrine that counteracts the powers of ‘globalisation’, requires institutional changes on many levels:
- governmental – regarding
- the creation of money, i.e. the sovereignty of nation states
- the statistics regarding the money supply, i.e. seignorage as income for the state
- monetary – regarding
- fixed exchange rates between national currencies
- fiscal – regarding
- taxation without tax havens
- grants that encourage entrepreneurs and employees alike
- measuring inflation long-term
- adding new poverty measures and social indicators to GDP
- regulatory – regarding
- ‘social business’ between for-profit companies and charities.