State capitalism

Examples of State capitalism in the following topics:

• Free Enterprise

  • Political scientist Ian Bremmer describes China as the primary driver for the rise of state capitalism as a challenge to the free market economies of the developed world, particularly in the aftermath of the 2008 financial crisis.
  • Bremmer states, "In this system, governments use various kinds of state-owned companies to manage the exploitation of resources that they consider the state's crown jewels and to create and maintain large numbers of jobs.
  • This is a form of capitalism but one in which the state acts as the dominant economic player and uses markets primarily for political gain. "
  • There are multiple variants of capitalism, including laissez faire, mixed economy, and state capitalism.
  • Many states have what are termed mixed economies, referring to the varying degree of planned and market-driven elements in a state's economic system.

• The Disadvantages of Mixed Economies

  • In contemporary terms, "social democracy" usually refers to a social corporatist arrangement and a welfare state in developed capitalist economies.
  • Marxian socialists argue that because social democratic programs retain the capitalist mode of production they also retain the fundamental issues of capitalism, including cyclical fluctuations, exploitation and alienation.
  • Others contrast social democracy with democratic socialism by defining the former as an attempt to strengthen the welfare state and the latter as an alternative socialist economic system to capitalism.
  • The democratic socialist critique of social democracy states that capitalism could never be sufficiently "humanized" and any attempt to suppress the economic contradictions of capitalism would only cause them to emerge elsewhere.
  • The Democratic party in the United States is seen by some critics of contemporary social democracy (and mixed economies) as a watered-down, pro-capitalist movement.

• The Communist Economic System

  • In 1928, Joseph Stalin achieved party leadership and introduced the first Five Year Plan, ending the limited level of capitalism that still existed.
  • His main goal was to abolish capitalism (an economic system ruled by private ownership).
  • Marx abhorred capitalism because the proletariat was exploited and unfairly represented in politics, and because capitalism allows the bourgeoisie to control a disproportionate amount of power.
  • Collective or state ownership of capital: capital resources such as money, property and other physical assets are owned by the State.
  • People are allocated residences by the State.

• Trade Credit or Accounts Payable

  • Trade credit is the largest use of capital for a majority of B2B sellers; Accounts Payable is money owed by a firm to its suppliers.
  • Trade credit is the largest use of capital for a majority of business to business (B2B) sellers in the United States and is a critical source of capital for a majority of all businesses.
  • For example, Wal-Mart, the largest retailer in the world, has used trade credit as a larger source of capital than bank borrowings.
  • Trade credit for Wal-Mart is eight times the amount of capital invested by shareholders.
  • They all benefit from their collaboration to make efficient use of capital to accomplish various business objectives.

• Capitalism in the U.S.

  • The United States is often seen as having a democratic capitalist political-economic system.
  • In the United States, both the Democratic and Republican Parties subscribe to this (little "d" and "r") democratic-republican philosophy.
  • Some argue that the United States has become more authoritarian in recent decades.
  • In the 20th century, however, according to some authors, capitalism also accompanied a variety of political formations quite distinct from liberal democracies, including fascist regimes, absolute monarchies, and single-party states.
  • States that have highly capitalistic economic systems have thrived under authoritarian or oppressive political systems.

• Equity Finance

  • The equity, or capital stock (or stock) of a business entity represents the original capital paid into or invested in the business by its founders.
  • The stock of a business is divided into multiple shares, the total of which must be stated at the time of business formation.
  • Firms need to acquire capital from others to operate and grow.
  • From a firm's perspective, they must pay for the capital it obtains from others, which is called its cost of capital.
  • If an investment's risk increases, capital providers demand higher returns or they will place their capital elsewhere.

• The Export-Import Bank of the United States

  • The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States federal government.
  • The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States federal government.
  • Its purpose is to finance and insure foreign purchases of United States goods for customers unable or unwilling to accept credit risk.
  • The Working Capital Guarantee program provides loan guarantees to banks willing to lend to exporting companies.
  • Explain the purpose of the Export-Import Bank of the United States (Ex-Im Bank)

• The Prevalence of Small Businesses

  • Industries with high concentrations of small and medium businesses generally do not require enormous capital investment up front.
  • Industries with a high concentration of small and medium-sized businesses (SMBs) generally do not require an enormous amount of capital investment up front.
  • For example, it is not likely that you would start a company to build airplanes, as that would take a large investment of capital for property, plant, equipment, and labor.
  • In the United States, roughly 20% of SMBs are concentrated in the goods-producing sector.
  • This requires a large initial investment of capital and access to low-cost labor, which are both tough for SMBs to access domestically.

• Development of Human Resources

  • "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view (i.e., the knowledge the individuals embody and can contribute to an organization).
  • Human resources development (HRD) as a theory is a framework for the expansion of human capital within an organization through the development of both the organization and the individual to achieve performance improvement.
  • Adam Smith states, "The capacities of individuals depended on their access to education. " The same statement applies to organizations themselves, but it requires a much broader field to cover both areas.
  • Organization development (OD), empowering the organization to take advantage of its human resource capital.
  • TD alone can leave an organization unable to tap into the increase in human, knowledge, or talent capital.

• Elements of economic globalization

  • The growth in cross-border economic activities takes five principal forms: (1) international trade; (2) foreign direct investment; (3) capital market flows; (4) migration (movement of labor); and (5) diffusion of technology (Stiglitz, 2003).
  • For example, China's economy is heavily dependent on the exportation of goods to the United States, and the United States customer base who will buy these products.
  • Direct investment in constructing production facilities, is distinguished from portfolio investment, which can take the form of short-term capital flows (e.g. loans), or long-term capital flows (e.g. bonds) (Stiglitz, 2003).
  • Capital market flows also include remittances from migration, which typically flow from industrialized to less industrialized countries.
  • Migration: Whether it is physicians who emigrate from India and Pakistan to Great Britain or seasonal farm workers emigrating from Mexico to the United States, labor is increasingly mobile.