[Music] in the public consciousness there exists primarily two economic models on one side there is capitalism with its emphasis on free markets and entrepreneurship and on the other side we have socialism with its planned economy and focus on social welfare programs as history has shown the believers in these two models have had their fair share of conflict against one another and this battle between these two titans of economic models is prevalent to this very day and it would seem like these two economic models are in no way compatible with one another like they are destined
to be in conflict for centuries to come however interestingly enough there is a third economic model that was prevalent in the early to mid 20th century and due to being associated with multiple controversial regimes this model has been largely forgotten in the modern day and when it is brought up it is rejected as elitist exploitative and oppressive this economic model is called corporatism many people who have researched about the second world war and fascist ideologies in general definitely have come across this world at some point corporatism was the main economic model in numerous right-wing authoritarian
countries in the 20th century primarily italy germany austria spain portugal and so on and because this economic model was associated with these authoritarian regimes it was very easily dismissed as a backwards and infeasible system which stirred the flames of oppression in europe with the decline of fascism and other authoritarian right-wing ideologies after world war ii corporatism also started declining alongside these ideologies because as i stated its reputation was heavily damaged due to its association with these regimes and so in the modern world corporatism has become nothing more than another footnote in history books as my
political views were still evolving in the past i kept switching back and forth from capitalism to socialism and then socialism to capitalism but after a while as i was slowly beginning to solidify my conservative views i started researching more into the corporatist economic model and found it to be a much better alternative to both capitalism and socialism in spite of its sustained reputation in this video i will be exploring the origins of corporatism what the pillars of this economic model are and if the stained reputation of the system is at all deserved [Music] in the
late 18th and early 19th century europe was beginning the process of industrialization and businessmen with a keen sense of entrepreneurship started their own factories and founded the first industrial plants said factories needed workers to man the machines in order to produce goods and wares so the owner could make a profit in the early days of this industrialization the conditions under which these workers lived and labored in were truly appalling and the first demands for better treatment started to appear a famous example of these early voices would be none other than karl marx who in 1848
with his communist manifesto demanded radical changes and called on workers to seize the means of production via a global workers revolution after which the wealth and fruits of the labor would be equally distributed this is in stark contrast to a different work by the scottish economist adam smith whose 1776 book the wealth of nations heavily influenced the start of the industrial revolution in contrast to marx he advocated for free markets and as little government involvement in the economy as possible it has to be taken into account however that smith and marx were alive during completely
different times in history and that their respective ideologies were therefore heavily influenced by the world they lived in smith for example was born in 1723 and died in 1790 which rendered him unable to see and reflect on the impacts of his ideas whilst marx was born in 1818 with him seeing the many problems and the injustice of industrial capitalism corporatism started to emerge as an idea in the 1880s and 1890s a few years after marxists end a century after adam smith's death and therefore it had the power of hintsight compared to the other economic models
this model was heavily influenced by the papal encyclial rerom novaro which was issued by pope leo the 13th in 1891 in this publication the pope criticized the quote misery and wretchedness pressing so unjustly on the majority of the working class whilst he also rejected socialism and affirmed the right to private property and so the idea of corporatism was born [Music] the term corporatism comes from the latin word for body corpus and it is no coincidence that it was named after this exact word according to the theories of corporatism an economy should work the same way
as a human body with the organs representing the various industries and parts of the economy and only if they work together can they make sure that the body our country stays alive if we look at capitalism and socialism we can see that in both systems there is a hint of class conflict where a certain economic class whether a high middle or lower dominates the rest of the classes in capitalism it is the high ranking class that dominates over both the middle and lower working classes and in socialism it is the lower working classes that exert
their influence in unions over the higher and middle classes but in the theories of corporatism class conflict will only make the country and economy unstable and inefficient as these classes struggle for power over the other corporatism believes that in order for an economy to be stable there needs to be harmony among the working classes with all three working together in order to ensure prosperity for their nation let's say for example you have construction workers and architects the architects make sure to lay out the plans on how a building should be constructed and the construction workers
are the ones who build the building and the foreman supervise their work if there is conflict between these groups the building will certainly never be able to be built or at least will take much longer without the architects the construction workers will not know the layouts and how to build while the architects despite having the blueprints can never build the building on their own it is only when both groups learn and realize that they are both dependent on each other and choose to cooperate can the construction project be realized the same exact way organs cooperate
and work together in order to keep the body healthy and this is the core pillar of corporatism choosing to promote class cooperation rather than class conflict where all three classes realized that they need the other classes in order to function properly and efficiently unlike class conflict where the working classes are engaged in a constant power struggle corporatism seeks to end class conflict once and for all and bring harmony and prosperity to all three working classes [Music] just as in socialism and capitalism corporatism as well has its own subunits with varying beliefs but in the end
they all follow the basic and core pillars of the corporatist economic system a lot of these corporate subunits emerged long before the rise of extreme right-wing and fascist states in europe the idea of liberal corporatism emerged during the 19th century in the united states and has been attributed to english liberal philosopher john stuart mill according to his ideas of liberal corporatism the state should not completely disregard the idea of capitalism but rather have the higher working class focus more on recognizing the needs of their employees rather than focus on making large profits off their backs
and then of course you have fascist corporatism the vast majority of fascist regimes in the 20th century used corporatism as their main economic system most notably the kingdom of italy which was the first fascist state to adopt corporatism however the main difference between fascist corporatism and the original idea of corporatism is that the state would incorporate every single corporate interest in the early 20th century corporatism was mainly practiced and promoted by catholics as i mentioned previously the idea of corporatism emerged under the pope and it was an attempt to integrate catholic social teachings into the
modern industrialized society this is why the vast majority of state catholic nations across the world had corporatism as their economic system even after the post-world war ii reconstruction period there were attempts to bring back corporatism in order to combat liberal capitalism this was supported by christian democrats national conservatives and even a few social democrats and so neo-corporatism came to be and was most prominent in the 60s and 70s there were numerous attempts to bring corporatism to the united states in order to replace the capitalist model the most prominent politicians who advocated for corporatism were gary
hart and michael dukakis both of whom were part of the democratic party unfortunately no matter how much they tried they could never revive the idea of corporatism especially in the united states today if you would say that you are against capitalism you will be labelled a socialist and communist if you stated that you were against socialism you would be labeled a capitalist it's almost like in the political world you are forced to pick one of these two models and while the majority of the people do pick a side i personally advocate for the third option
i view both capitalism and socialism negatively in society and they both have showed their ugly faces numerous times whether that would be the horrors and famines under the numerous authoritarian social estates or the corporate greed expressed by capitalists all around the world being more than willing to let thousands of people starve to death just so they could make a profit off of their misery it's time for the people to realize that there is in fact a third option that the only way to combat both capitalism and socialism is through corporatism and class cooperation and despite
corporatism being relatively forgotten in the modern world i am never going to give up the battle capitalism and socialism may have driven corporatism into the ground but as long as there are staunch believers in it like myself the battle will never be lost [Music] hello there my dear viewer thank you so much for watching this video it truly means a lot to me if you liked what you were watching why don't you go ahead and subscribe and turn on the bell that way you will be notified every time a new video comes out and you
will be supporting my channel along the way i would like to give a shout out to my channel member yi thanks to his support it will keep motivating me to make more and more videos on the channel and if you are also interested in becoming a channel member then feel free to do so you will have my eternal gratitude for that well that is all i don't want to keep you here longer than i have to so goodbye for now and see you all in the next video [Music]
