Lecture 2

Question 1

What are the forms of capitalism?

Answer 1

• Anglo-Saxon: UK
• Continental: Germany
• Nordic: Norway
• Mediterranean: Italy

Question 2

What is the anglo saxon model?

Answer 2

Market: Unregulated 
Tax base: Low
Industrial relations: Flexible/variable
Welfare system: Safety net
Economic function: Private sector/ privatization

Question 3

What is the continental model?

Answer 3

Market: State intervention when needed
Tax base: High corporate tax 
Industrial relationship: partnership
Welfare system: inclusive 
Economic function: Private/pubic partnership

Question 4

What is the Nordic model of capitalism?

Answer 4

Market: unregulated/ state as watchmen
Tax base: Low corporate tax, high income tax
industrial relations: Partnership/ regulated
Welfare system: Strong
Economic functions: Private sector

Question 5

What is a mediterranean model of capitalism?

Answer 5

Market: Hybrid
Tax base: Low
Industrial relations: weak unionization
Welfare system: Minimum 
economic function: Private/ stratigic

Question 6

What is relations in industry?

Answer 6

ow are relations between
employers & employees
organised?

What is the role
of government in
that organization

Question 7

What is the link between governance and models of capitalism?

Answer 7

All models mean government interference to some degree.

Governments issue governance in congruence with model of capitalism

Question 8

What is governance?

Answer 8

Intervention trough policy. (besturen (act of governing)) Mostly by state, but also other organisations.

Question 9

How are model of capitalism, state intervention and governance intertwined?

Answer 9

Models of capitalism are patterns of goverment intervention, what in reality = oatterns in governance

OR

Model of capitalism = form of structural state intervention, = pattern of consistent governance

Question 10

Why governance?

Answer 10

State intervention should guarantee certain (morally) desired outcomes.

(E.G. ‘ A responsible financial sector’ from the big short)

Question 11

How do (Morally) desired outcomes & model of capitalism correlate?

Answer 11

A state’s model of capitalism serves as a structural way of trying to attain that outcome

A (Morally) desired outcomes can be “guaaranteed via: A free market (Anglo-saxon) or state intervention (Nordic).

A free market leads to the desired otcome of individualism.

Or state intervention leads to a collective good

Question 12

What is the catch by governance?

Answer 12

Internationalisation & neoliberalism

Question 13

Why is internationalisation & neoliberalism a catch?

Answer 13

The idea that different models of capitalism continue to exist
in Europe has been questioned in recent years as European
economies have been subject to increased pressure from the
international economy.

> Increasingly, varieties of capitalism appear less as different
forms of capitalism and more as different types of
neoliberalism.

Question 14

What is neoliberalism?

Answer 14

Neoliberalism refers to the free market economic ideas that
are often associated with the Anglo-Saxon model of capitalism:

privatization, deregulation, and less state spending

Question 15

What for impact had the financial crisis and neoliberelism europe?

Answer 15

Neoliberalism = trust in free market, everywhere on earth, upheld/enforced politically:

• Less regulation and oversight, less political influence
• Increase of economic traffic & increasing interdependence of financial institutions
• fraudulent CDOs “Let’s make some money whataya say”,
• Implosion & crisis of the system

Question 16

Why where taking over banks “to big to fail”/ Why did the european bank failed/flawed

Answer 16

1. Failure of regulation & protection
   - No over-/ & insight in politics
2. Euro as common currency flawed process
   - Integration without taking differences in account
3. Preservation of system = bank(er)s, state
   (= taxpayers) took over debts
   Austerity( bezuinigen) followed

Question 17

What are arguments for austerity?

Answer 17

• More competitiveness, compete
  out of the crisis
• Less debt means more attractive
  economy internationally
• More international investment by foreign firms
• Force jobless people to find a job
• Means less wages, means reducing cost of business, means more competitiveness

Question 18

What are arguments against austerity

Answer 18

• Takes money out of economy, should invest!
• Debt can be paid back as soon as
  economy is getting back
• Hits the poorest the hardest
  (‘blame immigrants and the poor’,
  while it was the bankers…)
• Poor spend more! Or more direct…
• More expenditure means more income

Question 19

How did the financial crisis end?

Answer 19

Neoliberalism prevailed:

The bank bailouts and austerity politics post-crisis have shown
that there has been no move towards changing the neoliberal
system of economic governance

Question 19

How did the financial crisis end?

Answer 19

Neoliberalism prevailed:

The bank bailouts and austerity politics post-crisis have shown
that there has been no move towards changing the neoliberal
system of economic governance