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Answer on Other Economics Question for Laura Lebold

Question #2173
What was the New Capitalism?
Expert's answer
Elements of capitalism include private ownership of the means of production,
creation of goods or services for profit or income, the accumulation of capital,
competitive markets, voluntary exchange and wage labor. An important feature of
new capitalism is the elevation of equity to a role co-equal with efficiency, or
perhaps even superior to it, as a guide to policy. The model of New Capitalism
was characterised in its first phase in the mid to late 1990s by the explosive
use of new technologies in the commercial context: email, e-commerce,
e-contracting and the Internet. New Capitalism is based on the fact that
corporations are above all else vehicles of shareholder profit and promotes the
use of the market principle in areas of society previously considered free from
the market's constraints.

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