Rhine capitalism
The term Rhenish capitalism was coined by the French economist and Insurance Manager Michel Albert in 1991 with his book Capitalism versus Capitalism. He created this model of capitalism as the "neo- American " model of the capitalist market economy to which had implemented the governments of Ronald Reagan and Margaret Thatcher. While this was more influenced by the ideas of Friedrich von Hayek and Milton Friedman, possess the Rhenish capitalism, especially in its German version of the social market economy, social welfare facilities. Albert describes the Rhenish model as a fair, efficient and less violent. Nevertheless, caused the high earning potential for individuals and complex psychological phenomena and the media coverage that the American model appears as the more attractive and dynamic.
Definition of the Rhenish capitalism
For Rhenish capitalism is, according to Albert, that rather the banks rather than the exchanges given the financial issues, the close economic ties between banks and enterprises, a more balanced balance of power between shareholders and management, the social partnership between unions and employers, better educated through the dual system of vocational training and loyal workforce, a stronger government regulation of economic activity ( market regulation ), and finally, above all in the population shared values with respect to a more egalitarian society and the perception of common interests.
According to Albert, the markets are different in both models do not ( with the exception of religions) regarding the deemed to be non-tradable goods. Significant differences lie in the estimation of the tradable and the mixed (due tradable ) goods.
Two Anglo-Saxon authors, Peter A. Hall and David Soskice have, the thesis of different capitalisms in an extensive empirical and international comparative investigation continued and consolidated into a typology of (a) liberal and ( b ) coordinated market economies with different institutions and governance systems. A paradigm for coordinated market economies is considered the manifestation of the German Rhenish capitalism, the social market economy, where the welfare state practice than on the original concept Erhard and Müller- Armacks referred more.
The term Rhenish capitalism is understood as an allusion to the then seat of government Bonn on the Rhine and especially so combined that in Bad Godesberg with the Godesberg Program, the German Social Democrats accepted on the Rhine, this form of capitalism, on the other hand linked with the principles of the welfare state which, distinguishing the set of borders on the Rhine States "from the Netherlands to Switzerland ", as well as Scandinavia and Japan.
As a political slogan, the use of the term Rhenish capitalism has sometimes detached from the definition Alberts and is opposed as " cuddly capitalism " or " nepotism " the social market economy in the sense of Ludwig Erhard. For Herbert Giersch of Rhenish capitalism rather symbolized by figures such as Konrad Adenauer and Hermann Josef Abs as Ludwig Erhard.
Receptions
After Michael Spangenberg it was Michel Albert managed to " ' to internationalize the content of the social market economy in the concept of Rhenish capitalism and thus to lay the foundation for the comparison between a neo-liberal, Anglo-American capitalism understanding and capitalism with a Christian value binding ". The Bielefeld economic historian Werner Abelshauser stated: " The social market economy - not the concept but the practice - was in the period after 1945 the hallmark of the German version of the Rhenish capitalism ". The Italian legal scholar and former Europe Minister Rocco Buttiglione understands by " the social market economy - not as a general theoretical structure, but in the concrete form which it has adopted in Germany over the years. The Rheinische model ' for us is not a theoretical but a practical, actually actualized model that can have a guiding role for the whole European Union and perhaps within certain limits. " Walther Müller- Jentsch stated that the discussion on the most appropriate economic orders on the alternatives Rhenish capitalism versus neo- American model have narrowed.
The economist Gerhard Willke criticized in 2006 in his book " Capitalism" the tendency to pit the good against the bad Rhenish capitalism Anglo-American capitalism, as one-sided. The employment record "of some, Rhenish ' systems ' fall into negative weight. Albert's explanation for the attractiveness of the Anglo-American model is also not satisfactory, a better explanation is the " basis of specific conditions (eg, massive tax breaks for investment income since the 1980s, reduction of exposure to non-wage labor costs, etc.) " significantly higher return on investment
The economic historian Werner Abelshauser assumes that the Rhenish capitalism or as a contrast to the Anglo-American capitalism ( in Europe in the British Isles, Ireland and Iceland ) or to the Mediterranean capitalism ( in Spain, Portugal, in the southern parts of France is perceived in southern Italy / " Mezzogiorno "). The transition countries of Eastern Europe ( the Baltic states and the former Austro- Hungarian Dual Monarchy) would move in the direction of the Rhenish capitalism.
Hans -Peter Klös from the Institute of German Economy in June 2010 compared the effects of the financial crisis from 2007 on labor markets: " 5.4 million people are out of work ... in the USA, net and seasonally adjusted. In Germany, there were 54,000. This is already within the normal monthly fluctuations. The world speaks of a new German jobs miracle. "This stems from the fact that the German company" the unprecedented contraction in economic output of 4.9 percent ... can compensate predominantly internal ", ie by the " reduction of working time accounts, customizing the operating working, of course, the flexible deployment of as provided stressmildernder beta-blockers by the state instrument of " economic short-time work ". " The external flexibility, ie the adaptation about layoffs and vice versa via fast relisting on the rise - that's in Germany spend much less pronounced than in the U.S.." " In this crisis ', so is the condition, also has the Rhenish capitalism responds appropriately, flexible, fast and adequately in his own way .'" Rolf Kroker confirms: " the German response to the crisis have certainly its radiance ."
Quote
The Bielefeld economic historian Werner Abelshauser said in an interview with the news of 8 October 2008:
"There was a culture clash between the standard capitalism, the victorious dominated the globe, and the " Rhenish capitalism ", ie the organizational model that is practiced from Scandinavia to northern Italy, from the Seine to the Oder. The now looming disaster is a reason that in this culture war, the European model is stronger again. "