Watch All Shows Victor Davis Hanson Tony Kinnett Daily Signal Signal Sitdown

Watch All Shows Victor Davis Hanson Tony Kinnett Daily Signal Signal Sitdown

Home – Economy News – Common Good Versus Stakeholder Capitalism

Common Good Versus Stakeholder Capitalism

Amid the on-going debates about capitalism, it is worthwhile to flesh out some distinctions between common good capitalism and stakeholder capitalism.

Let’s start with some definitions.

Capitalism is generally associated with free enterprise and free market exchange whereby producers and traders generate profits by providing value to counterparties.

It can perhaps most starkly be contrasted with communism, wherein business decisions are centralized within government bureaucracies and the pricing signals of free market exchange are destroyed while prosperity turns into breadlines.

It can also be contrasted with socialism, wherein business decisions ostensibly remain in private hands, but profits are redistributed to the point of destroying all incentives to create value and—again—prosperity turns to breadlines.

Finally, the proposition that the corporatism of fascism ends badly is widely accepted.

FBI Followed Catholic Priests, Continued Richmond Memo Work After Removal Order: DOJ Report Finds

‘I Think We’re in a War’: Texas Pastors Gather for Training on Islamification Threat

Victor Davis Hanson: The Radical Left Wants to Destroy America and Rebuild It

Meanwhile, common good capitalism may best be defined at least in part by contrasting it with what it is not.

For example, one might envision a spectrum with (1) laissez-faire capitalism on one end and (2) government control of business decisions via socialism, fascism, and communism on the other. Common good capitalism may then be viewed as providing more government involvement than laissez-faire capitalism but less interference than socialism, fascism, or communism.

Finally, stakeholder capitalism may be differentiated from the foregoing because it proposes a system of internal corporate governance rather than external regulation (though it may be imposed by regulation). It is best contrasted with profit maximization in........

© The Daily Signal