Is there a theory such as Social Capitalism?

Question

We have been promoting social enterprises, but I am wondering about the macro-economic policy and framework underpinning it. Does Social Capitalism exist, an are we seeing more and more of it in practice with Warren Buffet and kie. applying their gains to social aims. Or is this just good old grantmaking???

Answer 1

I think what you are asking is whether capitalism can be used to benefit society without the motive of profit. (The reason you cited Warren Buffet is because he gave away without gaining) Capitalism will always be driven by profit; it is the foundation of capitalism after all. Yet, there is another dimension to your question. People will always to maximize happiness. Be it jewlery or having children. We must realize, however, that maximizing happiness also means minimizing feeling bad about something. That is where Warren comes in. He donated to reconcile the fact he is so wealthy and many are so poor. His donation gave him peace. That said, some people will always do things to help others inorder to make themselves happy.

As far as macroeconomic policy, we can always use financial incentive to encourage certain actions. In fact, that is why most people give in the first place. It makes giving profitable. I think this is obvious and that your question is really about giving because you generally want to help.

In short capitalism can be used to encourage actions geared toward certain societal ailments, but only if there is some kind of gain, financial or emotional.

Answer 2

A couple of points, and I apologize for seeming a little grim.
The term "social capitalism" probably won't stick, although it would fit what you are describing. The concept of "social capital" has already been staked out by organiational theorists to describe something like respect that an individual or group can gain through beneficial actions to relevent others. Maybe this really is what you are describing, except it seems to me that you are hoping for a little more altruism within the scope of social capitalism. I might be wrong.
Anyhow, the idea of more and more disbursements from the millionaires towards social causes is hard to verify. Warren and BIll's efforts are huge, but if we removed these to significant individuals from the total pool of potentially generous donors, I wonder how benevolent this group of people really is.
No doubt, for the next thirty years Bill and Warren's contributions will be factored in every statistic to illustrate the generosity of the upper class in order to justify many of their disproporationate claims on social influence and infrastructure.
Anyway, good luck to you and what you are doing...

Answer 3

A social enterprise is usually a private business or a non-profit organization deliberately set up to provide employment opportunities to less advantaged workers. While the less advantaged workers attain opportunities, the businesses operate just like any other business with managers seeking contracts, consumers, etc. just like any other in the economy. I don't believe in excessive subsidization of social enterprises. If the business has the potential for success, then let it ride on the coat-tails of whoever is managing it.

Answer 4

In all seriousness, America IS Social Capitalism...

after everything is said and done you pay about 40% of your salary in taxes (state, federal, sales tax, land tax, DMV fees, etc etc)

America has a ton of ways to get free healthcare and welfare.

How much more social can America get?

And sorry to stand on a soap box for a minute but let it also be known the Boston Tea Party happened because Brittian wanted 5% tax on tea which was considered absurd. But yet we pay 8% on sales goods and massive taxes on our salary. Things have gone sorely wrong for us and we don't even realize it.

Answer 5

Spain government is Socialist, but they are really Social Capitalists. All socialism in Europe is en-covered capitalism

Answer 6

The primary objection to British taxation was "without representation or benefit." If you don't want to pay taxes, go live in another country where taxes are lower and they don't have things like roads or the FDA.

Answer 7

Yeah! Bill Gates and Al Gore!