Three Economic Models: Capitalism, the Welfare State, and Socialism

In the capitalist economy business decisions are made by the owners of resources; the latter may take the form of money, real estate, machinery and equipment, or of claims and rights to use these resources or to dispose of them, or of power positions in organizations. Since labor also is a resource and a commodity, the ability to buy and to sell it comes under this definition of property.

In the Welfare State, these powers of free disposal have been curbed. They are regulated and contr...