Social Capitalism

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"A compromise is the art of dividing a cake in such a way that everyone believes he has the biggest piece."

Social Capitalism, shortened to SocCap, also known as Rhine Capitalism, the Rhine Model, Welfare Capitalism, or the Social Market Economy, is an economically centrist ideology that combines stances from both Social Democracy/ Social Liberalism and Capitalism.


Social capitalism is an economic theory which is located center to center-left. It shares similar views with ideologies such as social democracy, social liberalism, green liberalism and social justice.

Main values of capitalism such as free trade and free market, are also dominant within a social market economy. However, it aims to humanize capitalism, through limited state intervention, social reforms and the establishment of a welfare state. Left-wing forms of social capitalism emphasize equality and solidarity.

It is strongly opposed to socialist views, such as collective ownership of means of production and central planning. It is, however, also strongly opposed to fundamentalist capitalist views, such as unbridled capitalism and corporatocracies. A social market economy would attempt to address the perceived inefficiency of both systems in order to obtain the greater general well-being possible.



One of the major factors for the emergence of SocCap was to improve the conditions of workers under capitalism in order to prevent the rising threat of Marx's socialist movement . Germany implemented the world's first welfare state and universal healthcare program in the 1880s under the chancellor Otto von Bismarck, who developed a program in which industry and state work closely to stimulate economic growth by giving workers greater security.

Alfred Müller-Armack coined the term "Social market economy (Soziale Marktwirtschaft)" in 1946, it is seen as an evolution of Ordo-Liberalism.

Following the end of WW2, chancellor Konrad Adenauer implemented the social market economy model in Allied-occupied Germany. Ludwig Erhard was Adenauer's Minister of Economic Affairs and is primarily responsible for the Wirtschaftswunder.

United Kingdom

The Social market economy was first introduced to the UK by conservative politician Keith Joseph. Joseph, along with Margaret Thatcher, founded the Centre for Policy Studies in 1973. The Centre is a think tank and pressure group that was originally created to study and promote the social market economy. Joseph wrote the first piece published by the centre, titled "Why Britain needs a social market economy." The conservative party has advocated the implementation of a social market economy, albeit with an emphasis on nationalism.

South Vietnam

Also see: Person Dignity Theory

Ngô Đình Diệm was the Prime Minister of South Vietnam from 1955 to 1963, during that time instituting his "Person Dignity Theory", which viewed consumerism and Communism as equally bad, and the social market economy as the ideal compromise.


Kubitschekism is the ideology associated with Juscelino Kubitschek, a prominent Brazilian politician and Prime Minister from 1956 to 1961. He is generally regarded today as the Father of Modern Brazil, due to his polices of rapid economic development and stability. Though self identifying as a social democrat, his policy, if coincidentally, was reminiscent of social capitalism.




Social Market Economy (SOME)

Social Market Economy is rooted in free market capitalism, alongside economic intervention in order to ensure fair competition, with additional support for a welfare state to ensure social and economic justice. It is most commonly manifested in a free market economy being used as an allocation mechanism, and that output can be increased through mild to moderate economic interventionism on behalf of the state. This pairing can work and may even be complimentary, as this would cut poverty and still allow economic liberty and freedom.

Main tenets are private property, free trade, free market, market competition, mild to moderate economic interventionism, and a (usually) generous welfare state (with universal health care, universal basic income, etc;)[Note 3].

Eco-Social Market Economy (ESME)

PCBA Article: Eco-Social Market Economy

Eco-Social Market Economy is a type of SOME, which aims at balancing out the previously mentioned concepts of social and economic justice, economic liberty and freedom above with the added aim of environmental justice and the preservation/conservation of natural resources.

Humanistic Capitalism

PHB Article: Humanistic Capitalism


Post-Neoliberalism is a socio-economic and political paradigm that has emerged as a response to the shortcomings and inequalities associated with Neoliberalism. Departing from the dominant economic model of the late 20th century, post-neoliberalism critiques the overreliance on free-market capitalism and advocates for a more inclusive, socially just, and sustainable approach. Characterized by a commitment to democratic governance, social justice, and environmental sustainability, post-neoliberalism seeks to balance market forces with social considerations. It calls for policies that address income inequality, prioritize marginalized communities, and integrate ecological concerns into economic decision-making. This paradigm shift extends globally, emphasizing fair trade practices, debt relief for developing nations, and reforms in international economic institutions.


Social Capitalism can be portrayed as a businessman that cares about making money but also advocates for social justice and equality. Usually being referred to by other ideologies as the most Compassionate form of capitalism. He is usually seen giving money to poor people and helping others. Sometimes he spares his time to plant trees with Eco-Capitalism.

Usually hangs out with Welfarist and Capitalist Ideologies but sometimes also was friends with Environmentalists.

How To Draw

Flag of Social Capitalism
  1. Draw a ball and fill it with yellow
  2. Draw a green rose in the center
  3. Add two eyes
  4. Done!
Color Name HEX RGB
Yellow #FFCC00 255, 204, 0
Green #008000 0, 128, 0




  • Classical Liberalism - You have great ideas, but please have some decency, will you?
  • Neoliberalism - Thanks to you the post war consensus is over and you didn't go back to the laissez faire of history. But you should embrace welfare a little more like your son.
  • Hayekism - You're too laissez-faire for my taste, but at least you still realize the importance of having a basic safety net. Also, thanks for (maybe) inspiring my beloved son.
  • Keynesian School - Government intervention during economic downturns is crucial, but let's also allow businesses to thrive and expand.
  • Social Corporatism - We agree on a robust welfare state and economic intervention, but I prefer private property and a market economy.
  • Welfare Chauvinism - Your desire to restrict welfare to certain people reminds me of someone.
  • AfDism - Like him, calm down a bit. Though it's nice to see that you like Ordolib.
  • Liberal Corporatism - Not bad at all, just sometimes too centralised.
  • Social Democracy - Too socialist.
  • Paternalistic Conservatism - Too statist.
  • Conservative Liberalism and Neoconservatism - Helped to end the post war consensus but went way too far in the opposite direction.
  • One-Nation Conservatism - We used to be enemies but we appear to have become the same over the last couple of decades.
  • Fiscal Conservatism - I like drinking, and you are rather sluggish.
  • Person Dignity Theory - Nice to see you're opposing the commies, son, but what's with the autocracy and chauvinism?
  • Authoritarian Capitalism - Pro-free market brother, but I wish you were less like them and more like them .


  • Nazism - Social darwinist who ruined Germany and rejected Müller-Armack's ideas! Of course, you say that capitalists should help the society, which is good, but you are imposing a third oppressive position.
  • National Capitalism - He is more capitalist, but he hates welfare even more than the nazi.
  • Capitalist Communism - Insane
  • Democratic Socialism - You will never be as popular among workers as i am.
  • Market Socialism - When I said we need free markets, I meant with entrepreneurs and shareholders too!
  • Corporatocracy and Plutocracy - This is what laissez-faire leads to!
  • Social Darwinism - Or this!
  • Kleptocracy - And this is what socialism leads too.
  • Libertarianism - Capitalism can't do everything on its own.
  • Austrian School - For the love of God, I'M NOT A SOCIALIST! Laissez-faire is not the way to go!
  • Anarcho-Capitalism - You're just flat-out delusional.
  • Honeckerism - My Cold War rival. Your economy was so crappy, you had to build a wall just to keep people in.
  • Posadism - What? Nuclear wars are better than welfare, and I'm being a status quo holder? Time to call the CIA, to catch this terrorist scum.
  • Kraterocracy - YOU. ARE. THE. WORST.

Further Information





  1. Aka "Post-COVID Capitalism".
  2. During the second half of the 2010s, his often incomprehensible speeches became the subject of various memes.
  3. You can technically have a social market economy without a welfare state, as many of the SOME's original advocates (like Wilhelm Röpke) opposed it, believing that their interventionist and monetary policies (e.g., the minimum wage) would eliminate the need for benefits. SOME countries adopted the welfare state out of predominantly pragmatic reasons.


  1. "Konrad Adenauer as inventor",
  2. The Ferreira Gomes family is accused of turning the state of Ceará into an oligarchy dominated by the family.