Schumpeter: Capitalism, Flexicurity, and Democracy?

Peter Flaschel and Alfred Greiner

in Flexicurity Capitalism

Published in print April 2012 | ISBN: 9780199751587
Published online May 2012 | e-ISBN: 9780199932825 | DOI:
Schumpeter: Capitalism, Flexicurity, and Democracy?

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Chapter 3 starts from Schumpeter's investigation of the possibility of a Western type of competitive socialism that successfully not only solves the coordination problem, but also the incentive problem in the principal-agent scenario of a socialist economy. Viewed from today's perspective one has to question his solution of the coordination problem under socialism. Yet, a flexicurity reform of the labor market would not only integrate the concepts that are discussed in chapters 1 and 2, but would also make Schumpeter's type of socialism unnecessary for a proper working of the economy in democratic societies. Moreover, many aspects of capitalism, its microeconomic institutional experience of running small, medium-sized or large enterprises in particular, could just simply remain intact under such a new social structure of accumulation.

Keywords: competitive socialism; flexicurity capitalism; incentive problem; principal-agent scenario; sustainability

Chapter.  34439 words.  Illustrated.

Subjects: Economic Systems

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