Statistical Sciences 2035 Study Guide - Quiz Guide: Monetarism, Aggregate Demand, Friedrich Hayek
16 Oct 2018
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More on the pragmatic ideas, than strict market principles. State intervention should be used to protect infant industries from rigours of foreign competition. Central feature: social market: attempt to marry market competition with need for social cohesion and solidarity. (business organisation, based on social partnership. High and stable levels of capital investment together with emphasis on education and training. Because consultation and consensus it"s inflexible, making it difficult to adapt. Relatively high levels of social expenditure, which burdens employers and employees. Not directed via impersonal price mechanism, but through relational markets. E. g. ownership that results in close link between finance and industry in japan. In return for loyalty and work, they have traditionally expected lifetime employment, pensions, protection, etc. teamwork and collective identity: little income differentials. State plays vital role in guiding investment, research and trading decisions. Heavy demands on workers and their families. Long hours and discipline, decrease in individualism, work centrepiece of life.
