Difference Between Capitalism and Corporatism
Capitalism vs Corporatism
Capitalism is a social and economic system which recognizes individual rights, including the right to own properties and the possession of goods for the individual’s personal consumption. Corporatism, on the other hand, is a form of economy that was created as an option to socialism and intends to achieve social justice and equality without the need to take away private property from individual members of society. It stresses the positive role that government has in ensuring social justice while restraining social unrest as people look after their self-interests.
The key player in a capitalist economy is the individual or a groups of individuals. They are given equal opportunity in competing as buyers or sellers of property or goods in a free market without the intervention of the government except for rules and regulations that maintain a level playing field. The trading of goods and services are independent actions of the individuals. There is no room for aggression in a capitalist society. The heart of a corporatist economy, on the other hand, is the political community that must reach its full potential to enable individuals of society to attain self-fulfillment and happiness.
Capitalism allows individuals unlimited opportunities in creating wealth for themselves and own as much properties and goods that they can afford to buy. This results in inequality that can eventually motivate individuals to work for more wealth to catch up with other individuals. Individuals are, however, to respect the rights of other individuals and avoid coercion. All forms of aggression against another individual are considered illegal.
In comparison, corporatism is a collectivist society just like socialism. Corporatism, however, only nationalizes private property in fact and not by operation of law. It blends capitalism and socialism in governing society and the economy. As such, it allows private businesses to operate within tolerable limits while prioritizing and promoting major projects of the state. The government justifies the creation of public ventures claiming that there are no takers of certain projects that are essential to the people from the private sector because the projects are huge and require a large amount of investment that the businessmen cannot afford.
In terms of labor issues, capitalism resolves labor questions through collective bargaining where representatives of management and the labor union sit together to reach an agreement on the issues. Corporatism, on the other hand, organizes labor and management into major interest groups or corporations to negotiate problems including labor issues through their representatives.
Both capitalism and corporatism are still practiced today and even co-exist and are adopted by politicians as advocacies.
1. Capitalism is an economic system that recognizes individual rights while corporatism is a political and economic system that seeks social justice and equality among individuals.
2. The key player in a capitalist society is the individual who must work for his own well being while the central figure in a corporatist society is the political community that must work for the individual’s self-fulfillment and happiness.
3. Capitalism is an individualist society while corporatism is collectivist.
4. Labor issues in capitalism are resolved through collective bargaining while corporatism tackles such issues through negotiation.
5. Both capitalism and corporatism are still in use today.
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