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Sociocapitalism

There are many forms of capitalism, including merchant capitalism, laissez-faire capitalism, industrial capitalism, finance capitalism, and market capitalism.

 Sociocapitalism is an improved version of capitalism that corrects its weaknesses. It has the following guidelines:

1. The mechanism is based on the self-regulating supply and demand (the "invisible hands") in general except those stated in items 6-8.

2. The basic principle is free competition and seeking profit (the principle of "survival of the fittest"). But it also adopts social policy to help the disadvantaged through universal healthcare, low income subsidy, etc.

3. It normally requires private ownership of capital and properties.

4. It favors free market, deregulated rather than centrally planned economy, and minimum government intervention in general except those stated in items 6-8.

5. It prevents excessive uneven wealth distribution through social policies such as ceiling of wealth or accumulative tax.

6. It adopts some regulations in regard to international trade to reduce the disadvantages of developed market due to its higher cost and to protect the emergent market from imperialism.

7. It utilizes government intervention in a mixed economy to prevent "market failure" such as the Great Depression.

8. It adopts regulations to prohibit immoral business practice, poor labor treatment, imperialism, etc. It also uses regulations to protect the environment from profit-driven pollution or abuse.

 

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