The Eco-Social Market Economy is not capitalist. I consider it an economic and societal model, where emphasis is placed on “capital interests” (a particularly high rate of return capital invested, “share holder value”, etc.), “capitalist”. Therein I see the danger of the current “neo-capitalism”:
The business management is under extraordinary pressure to, over and over again, present high short term profits or respectively rates of return. One the one hand this is to the burden of employees, on the other hand this impedes long term business strategies aimed at economic sustainability.
Therefore we consciously refer to the Eco-Social Market Economy as “market economy”. By this I mean a highly competitive economy with focus on production, creation of value and services. The goals are: to create values, a high purchasing power for as many people as possible, a high level of income and a broad income distribution.
Thereto a revealing quote from the “social market economy’s father” Ludwig Erhard, from 1977:
“Neither the free market economy of the liberal freebooters of a past era, nor the forces’ contest and such phrases, but the socially binding market economy, which lets individual’s show to their advantage, which place emphases on the personality’s value and which grant the merited earnings to achievements, that is the market economy of modern imprint.”
The three strategic pillars of the Eco-Social Market Economy’s concept can be specified in the following keywords:
“Market Economy”:
An efficient, competitive economy (in terms of the Lisbon strategy) is the objective:
+ Research, development, innovation
+ Reduction of barriers to efficiency: over regulation, unnecessary bureaucracy.
+ Extension of incentives: duty and tax system, funding system
+ Enhancement of the regionally operating middle class businesses!
“Social Issues”:
Social Fairness – at a local and global level – with new imagination is the goal.
+ Ensure the social and health system’s capacity and financial feasibility for the future – for
example through the broadening of the determination base.
+ Improve the familial, communal and private care services
+ Create diverse networks of social solidarity
+ Global solidarity!
“Ecology”
Mobilise the market’s forces for the goal of SUSTAINABILITY!
+ A strict polluter pays principle! Ecological truth for the formation of prices and costs – create competitive advantages for sustainable products
+ Eco-Social tax reform: a long term conversion of taxes and duties and favour of people and sustainability
+ A strict labelling of products, transparent truth about the products.
