Abstract
The dynamics of the world economy are shifting as the mechanisms for increasing productivity and generating economic growth evolve in today’s digital era. The world’s rich democracies face new challenges in sustaining their prosperity. How should the wealthy nations adapt? Ever since the conservative/neo-liberal revival in the 1980s, there has been a trend to think of successful adjustment in terms of a choice between social protection and market flexibility. In this chapter, we recast this all too common framing and emphasize that market flexibility and competitive advantage can be developed through well-designed social policies. Providing appropriate mechanisms of social protection remains an important task through which states can facilitate market adjustment.
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Cleven, T.S., Watson, B.C., Zysman, J. (2008). National Economic Adjustment in the Digital Era: Exploring the Role of Social Protection. In: Jansen, S.A., Schröter, E., Stehr, N. (eds) Mehrwertiger Kapitalismus. VS Verlag für Sozialwissenschaften. https://doi.org/10.1007/978-3-531-91784-9_6
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