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Capitalism needs a new social contract

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  • Shafik, Minouche

Abstract

Capitalism needs a new social contract to better manage the consequences of technology and an increasingly diverse and flexible workforce. That social contract should retain the benefits of flexibility but do a better job of providing security in the form of mandatory benefits, putting a floor on incomes, and investing far more in helping workers adapt to economic shocks and rising automation. It also means a new deal with business that would achieve a more level playing field in how capital and labour are taxed.

Suggested Citation

  • Shafik, Minouche, 2021. "Capitalism needs a new social contract," LSE Research Online Documents on Economics 112213, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:112213
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    File URL: http://eprints.lse.ac.uk/112213/
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    References listed on IDEAS

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    Cited by:

    1. Rebecca M Henderson, 2021. "Changing the purpose of the corporation to rebalance capitalism [‘Towards Collaborative Community’]," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(4), pages 838-850.

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    More about this item

    Keywords

    capitalism; social contract; labour markets; taxation of capital;
    All these keywords.

    JEL classification:

    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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