Social CapitalismGregorio Cardenas

Essence of Concept• What is Social Capitalism according to Gregorio Cardenas?

– Social Capitalism is an ideology based on combining the best of practical socialist ideologies (including communist ones) and the best of capitalist ideologies together wherever appropriate (in theory or in proven practice) to foster a more ideal society and supporting government. The aim of such reality would in effect establish a more effective balance between power and money among society. Such harmony would allow for the society to provide the highest level quality of life possible in the world.

– Like communism in its defined form by Marx & Engels, Social Capitalism has not been fully implemented in history.

– Since the end of the Cold War, opposing ideologies such as Capitalism and Communism have started to move toward each other. Russia is now more capitalist and USA is more socialist in practice. China has stricken a balance between communist/socialist government with their capitalist society. Though not perfect in China, the developed and developing governments of the world are ever increasingly aware that globalization has changed the game of how society, business, and government at the State level must progress to better compete internationally.

– The battles of the future will be economic. How well a society can be best supported by business and government will determine who is the winner.

Principles of Social Capitalism• Both capitalist (private sector) and socialist (public sector) ideologies co-exist to best

support society via the balance of both managed by the government. Thus, there are 2 tiers from which income is earned.

• Government has the role to support the populist decisions made by citizens via tools such as referendums, petitions, online voting, etc.

• Government is “ultra-transparent” and serves the population by implementing decisions. Government cannot be blamed for decisions but rather for poor implementation.

• Parliaments, Congress, Senates, etc are not obligatory wherever and whenever citizens do not believe their representatives accurately represent them. In some cases, an elected President can suffice.

• A key “effectiveness” measurement of one social-capitalist State and another is based on the level of cooperation between the private and public sectors. If either has a better business model - the better one wins.– If private company can run the US Postal Service better than the government, then the private sector can

own it. Likewise, if the government can run American Airlines better than the private sector, then they can do the same. In either case, society dictates.

Labor TiersTier 1: Private

• This tier includes all traditional for profit and non-profit companies and organizations.– Coca-Cola– McDonald’s– IBM– AT&T– British Petroleum– HSBC– Red Cross

Tier 2: Public• This tier includes all

traditional government sectors at the local and State level.– Police– Military– Judges/Legal– Public Transpiration– Sanitation– Energy– Non-Private Employees*

• *Explained in the next slide.

Unemployed Vs. Non-Private Employed Vs. Non-Labor

Non-Labor• In social capitalism this

refers to all citizens and residents that do not qualify for work due to age, ability, education, immigration, handicapped, prisoners, etc.

• Examples include:– Retired Senior Citizens– Underage Children– Sick & Injured– College/University

Students– Pregnant & Nursing

Mothers– Criminals In Jail– Non-residents

• In social capitalism the notion of being unemployed because a citizen cannot be hired by either the private or public labor tiers does not exist. To be unemployed is the choice of the individual.

• Unproductive, non-beneficial yet able citizens who chose to be unemployed do so at their own expense.

• The public sector cannot eliminate able citizens.

• In social capitalism if you are not employed by the private sector you are automatically employed by the public sector. To be unemployed remains a choice.

• The public sector employees all able non-private citizens. Labor is provided to all though not always relevant to prior work experience or education.

• Non-Private employees support society however possible for the benefit of all.

Non-PrivateUnemployed