Question

What are the basic philosophy of the Social Market Economy?

Answer 1

Social market economy is also known as social capitalism.It's a socio-economic form of market which considers both economic welfare and equal competitive conditions.Sometimes it is also known as coordinated market economy. It was basically originated in West Germany.This was made to make an another way which is between socialist economic form and laissez faire economic form.

It aims to develop an economy by combining different factors like tax, money, investment, credit, trade , customs and social policies also, which will help to meet the demands of the people as well as work for welfare of economy and meeting its goals.It focus to unite welfare of economy with the free initiative, in the economy of competitions.It is against the policies of laissez faire economy and also socialist form of economy.It combines intervention of state and private undertakings with rules and regulations to develop fair competitive market and establish a stability between high economic growth rate , lower unemployment level , welfare of society, lower inflation rate and public facilities etc.