Main Elements
The main elements of the Social Market Economy in Germany are basically:
- The Social Market Economy contains the central elements of the free market economy such as private property, free foreign trade, exchange of goods, and free formation of prices.
- The government implements policies that are designed to remedy some of the problems of the free market economy. One of these policies is the establishment of a social security system that includes pension insurance, health care and unemployment insurance. Members of the labor force pay into the social security system, providing it with its main source of revenue. Other policies of the social market economy are designed to restrain the free market (antitrust laws, laws against the abuse of market power, etc.).
- Some prominent authors (Werner Abelshauser, Bernd Rüthers) also regard social partnership as a key element.
Read more about this topic: Social Market Economy
Famous quotes containing the words main and/or elements:
“One of the main things that interfere with our joy is the belief that if we try hard enough, read the right books, follow the right advice, and buy the right things, we could be perfect parents. If we are good enough as parents, our children will be perfect too.... Unfortunately, what comes from trying to live out this philosophy is not perfect children but worried parents.”
—Lawrence Kutner (20th century)
“psychologist
It is through friendships that teenagers learn to take responsibility, provide support, and give their loyalty to non- family members. It is also in teenage friendships that young people find confidants with whom to share thoughts and feelings that they are not comfortable sharing with their parents. Such sharing becomes one of the elements of true intimacy, which will be established later.”
—David Elkind (20th century)