Welfare capitalism

The welfare capitalism is an economic concept from the USA, which was particularly late 19th century / early 20th century much discussed. At the core content economically strong companies should contribute independently to reduce social inequalities. Here, the company's commitment extends to one on charity for its employees, on the other, on measures to make the human capital of employees widely available for the production process.

Origin

The concept of welfare capitalism comes from the industrialization of the United States in 1880 and is seen as one of the main reasons for the development of NPOs in the United States. In particular, the experience of the emergence of the USSR and the problems with the so-called social question in Europe, the search for alternative concepts accelerated: From the perspective of entrepreneurs, the voluntary establishment of a welfare system for their employees was a simple means of an impending social legislation through voluntary resolution of to prevent problems and, ultimately, to be able to retain more decision-making powers.

Benefits

From the perspective of the entrepreneur, the employees are more motivated by a better integration into the production process, productive and identify more strongly even in unpleasant business decisions with the company. From the perspective of the employee, the work is varied and interesting, also important social benefits provided by the employer.

Criticism

• The intentions of the entrepreneur are not a humanitarian nature, rather it is about the exploitation of untapped potential of its employees.
• The social care, therefore, is directed only at people who can already generate an income. Unemployed or incapacitated people (unemployed, housewives, disabled, etc. ), however, do not have access to social benefits.
• Due to the social programs sharp dependency relationships between employer and employee are created which relies heavily on arbitrary Gutwillen the employer.