an article here (link ) of "peculiarly free" in the the context of mass unemployment is reported with systems such as the social market economy.
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The mixed economy and the phenomenon of mass unemployment
mass unemployment is not inevitable and not a natural state, it is the more powerful side effect of a particular economic form of organization - the mixed economy. Even before the First World War - in a period of relatively unregulated labor markets - the permanent mass unemployment was a social problem with impact largely unknown. Only in the twenties of this phenomenon occurred in the order in appearance, should attain historical significance.
A socialist regime will have many problems but no problems to deal with people. Neither the Soviet Union, or for Nazi Germany, neither North Korea nor the unemployment statistics for Cambodia was a reason for concern. Work is always enough there: You can let people dig a ditch, build a tank or sandbags can take from one to the other side of the road and back again. In real socialism, it was the absolute compulsion, in the pure market economy, the unlimited freedom that ensures that unemployment is not even in severe economic crises to a mass phenomenon. Downturns led to falling wages and difficult working conditions, but even with heavy declines unemployment rarely reached the level that is heard today in many states to normal.
unemployment as a political and social phenomenon arose in systems that are neither pure market economy, nor are purely socialist. Modern mass unemployment occurs mainly in countries with a mixed economy. When the Khmer Rouge, there was no unemployment, nor with Hitler, Stalin or Mao. Even in the existing strong market-oriented states, such as in modern Hong Kong or Singapore, even high unemployment rates below the threshold considered to be low in other industrialized countries is.
To explain the modern phenomenon of mass unemployment, one must understand how the system of mixed economy collide two opposing components. In the mixed economy, a system of partial freedom applies to a system of forced part. Both must work together to produce the modern phenomenon of mass unemployment. Under socialism, the setting requirements and the working conditions are laid down. In the pure market economy, there is no obligation to hire someone, but the conditions of employment are in the area of freedom of contract. In the mixed economy, however there is the provision that the contractor is free to anyone set or not set, but he has not freedom to determine the terms on which he does.
have, since the entrepreneur to not hire someone, they make more frequent use of this option, if the conditions that legally sanctioned by collective agreements, minimum wages and the like, they are not attractive. The less attractive these conditions are, the more often they will choose to forego settings. As I said, it is not socialism in this choice, and in the pure market economy, there are no restrictive conditions. It is therefore of the so-called middle way between pure market economy and socialism, which is particularly vulnerable to mass unemployment. Since the policy of force in this middle way the entrepreneur can not stop the unemployed, but also the conditions of this grant does not want to do this to his ideas, there are many job seekers, who are not recruited by entrepreneurs.
While the entrepreneur does not stop, then he is off the hook. If he stops, he must pay a certain salary, pay taxes, must undertake to lay off the set after a certain time under certain circumstances, and he shall not reveal any preference in terms of age, race, religion or gender . The trader may choose to instead prefer to hire people to set up a machine or have them do the work abroad. The potential entrepreneur but may also decide to establish not only the company. You can invest the money instead on the international capital market or squandered.
As long as you decide to start a company to hire anyone and not to invest, one is free. Once you decide to do it, one is subjected to a comprehensive regulatory framework. Companies are actually classified as public entities. If you are throwing a private party, you can smoke as much as you want if you opened an inn, are there specific rules. This means at the moment in which to convert cash into a business investment that converts to his own wealth at the same time in a public institution.
This can be entrepreneurs will be reluctant to become entrepreneurs or existing companies to bring it to exercise its right, not potential candidate can. As the state force in the mixed economy the entrepreneur can indeed, as it employs people, but not to the fact that it employs people, nor to establish a business in, it must concern themselves with the people in the jobs created by it conditions are not set. Theoretically, government could simply all people , Set and there was statistically full employment. Such is the socialism. On a stone age level that's no problem. One can assume that this system of full employment in North Korea works reasonably well.
The question is not how to deal with people is the question of how to finance their livelihood. Totalitarian systems can achieve this by lowering the standard of living accordingly. Depending on how far advanced this system is to measure the allocations no longer in monetary terms, but in calories.
In the modern welfare democracy, there are not only the ideal of full employment, but also the implicit and explicit promises a certain standard of living. Unlike dictatorships dissatisfaction can be articulated. During the dictatorship of the newsreel happy workers, shows the clear go to work, although they are hungry, the media have in a democracy, an army of long faces, to complain about low wages and inadequate benefits. Therefore, the state guarantees a certain standard of living, the cost for this he denies by borrowing. Unlike in previous centuries, it is not war, but the social costs, which are responsible for most of the national debt.
At the end of the 20th Century had not been victorious capitalism over communism, as which has been often described. Rather, the mixed economy had survived state socialism as the one-eyed man to the blind. Mass unemployment and public debt are part of a historical epoch. Unemployment, high debt and inflation rates are associated with this system. This era began in the 20th Century and has continued until today.
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