Social capitalism: a look at macroeconomic results from Ecuador, Peru and Colombia

Abstract

Adam Smith, affirmed that individual egoism is the one that leads to generate wealth and the economic growth of nations. With a rising capitalism as a result of the colonization of the Americas, the formation of an entrepreneurial class avid for money, which accumulates and reinvests surplus, gives way to the industrialization and wealth of the people. But this is not equitable, it is a product of what Karl Marx would call “exploitation of man by man”. This research aimed to investigate the evolution of the capitalist system, the role of the state and its level of intervention, to improve the living conditions of its population, comparing indicators of Colombia, Ecuador and Peru. This study is a documentary work that considered macroeconomic data, along with the opinion of experts in the subject. The results showed that, in the last years, the countries with less state intervention had a better performance in their economy. It is concluded that current capitalism considers the social aspect, motivates to innovate, to undertake, to look for new sources of income; A protective state is not synonymous with well-being in the population, it needs private initiatives that generate employment with social commitment. Countries with less interventionism have managed to have better economic results with the consequent benefits for their population.