Social Democracy, Capitalism, and Competition

Our social democracies and welfare states face economic and governance challenges that threaten their very survival. Against this backdrop, Social Democracy, Capitalism, and Competition argues that a true social democracy requires a clear definition and a refocusing of the roles of the public and private sectors.

Using his novel competition-based social democracy and new competition-based capitalism models, Marcel Boyer goes back to the basics. Returning to the foundational characteristics of what social democracy and capitalism are supposed to be, he reimagines how public and social goods and services – such as education, healthcare, and transport infrastructure – can be provided in a way that aligns with citizens' best interests. Boyer shows how recent decades have witnessed a shift away from competition and competitive processes, toward more bureaucratic control of public and social goods and services and more ironclad protection of state providers against contestation by potentially competitive organizations. This crony capitalism results in loss of purpose, organizational inefficiency, and outcomes that increasingly deviate from their original objectives of social wellbeing. Boyer maintains that productivity gains, economic growth, and prosperity for all actually require a degree of income and wealth inequality.

Written with a facility that will appeal to anyone interested in public policy and economic reform, Social Democracy, Capitalism, and Competition is a book all governments should have on their reading list.

Marcel Boyer is emeritus professor of economics at the Université de Montréal.