Question

2. What is the difference between state capitalism and welfare capitalism? Explain with examples.

Answer 1

2.

State capitalism is a kind of capitalism that is exercised by a state i.e. it is a political system in which the state has control over the means production and the use of capital. This form of system existed in Russia.

Welfare capitalism is a policy that is business favored as it believes the private sector can provide social welfare programs more effectively than the federal government. Welfare capitalism is usually considered as the opposite of the welfare state. For example; welfare capitalism first developed in the United States in the 1880s and it gained prominence in the 1920s.