In recent years, progressive capitalism has been promoted by figures like New Keynesian Nobel-winning economist Joseph Stiglitz, former Minister of State for Science, Research and Innovation, David Sainsbury, and U.S.
It involves rewriting economic rules to address issues like market dominance, ensuring globalization benefits all citizens, and implementing government investments in technology, education, and green infrastructure, alongside public options for essential services.
Firstly, it involves restoring equilibrium among markets, the state, and civil society to tackle issues like economic stagnation, rising inequality, and environmental degradation through government regulation and investment.
"[6] Patterson states that:The goal of progressive capitalism is restoring societal balance by recognizing that private enterprise is the core of a broadly successful economy, but that the ideology of supposedly-unfettered markets underpinning shareholder capitalism—abetted, in reality, by subjective public policy choices—is inefficient, destabilizing, and far from inevitable.
[6]Progressive capitalism aims to enhance America's prosperity by facilitating the expansion of individual opportunity instead of nurturing perpetual reliance on an excessively intrusive government.
[6] Aligned with progressive capitalism are societal aims such as prioritizing education from K-12 to adapt to the evolving economy, ensuring relief from college and student debt, and offering comprehensive support for families, including access to healthcare.
[6] Stiglitz argues that progressive capitalism aims to build a society characterized by greater creativity, care, honesty, and empathy, which in turn will enhance both economic and social functioning.
[3] Progressive capitalism underscores the importance of corporations, small businesses, and profit-making firms, while also advocating for a robust array of institutions, particularly government involvement in regulation and investment.
Unlike the neoliberal belief that markets alone are the solution, progressive capitalism advocates for a balanced approach where the state actively regulates to ensure competition and prevent exploitation.
A strong entrepreneurial state plays a vital role by supporting capital with high-risk projects financing, infrastructure, and creating new markets, and aiding labor through education, skill training, childcare and housing.
Brandeis and Stiglitz criticize the harmful effects of finance capital when banks exceed their roles, such as by engaging in management or complex tasks beyond assessing and holding loans, leading to conflicts of interest and inefficiencies.
This model also seeks to address contemporary challenges in the digital communications sector by applying foundational principles similar to those that guided the success of the second industrial revolution in America.
It advocates for creating regulatory frameworks and guidance that foster competition and innovation within decentralized markets while furthering the broadly applied economic, social, and political views of society.
It emphasizes the need for adaptable and expert-driven policy implementation to reflect the dynamic nature of the economy and calls for democratic and participatory political processes to support evolving economic structures.
By creating a more just economic system and regulating financial power in politics, progressive capitalism seeks to protect democratic processes and enhance real freedoms for all citizens.
This approach offers a different way to organize society, focusing on expanding individual opportunities and creating a fairer, more sustainable economy, in contrast to the austerity and market-driven policies of neoliberalism.
He argues that the alternatives put forth by nationalists and neoliberals would only exacerbate existing issues such as stagnation, inequality, environmental degradation, and political discord, potentially resulting in undesirable outcomes.
It contrasts with extremes like communism, which concentrated power excessively, and neoliberal approaches, such as those of Reagan and Thatcher, which leaned too far towards free markets with insufficient attention to social justice.
The Third Way, exemplified by leaders like Clinton, Blair, and Schröder, failed to adequately address social justice concerns while embracing neoliberal policies like free trade and tax cuts for the wealthy.
Richard North Patterson suggests that this approach would address the acquisition practices of tech giants like Amazon, Facebook, Google, Apple, and Microsoft, which have collectively acquired 436 companies and startups over the past decade without significant regulatory oversight.
Richard North Patterson has suggested that the framework would involve strengthening the Federal Election Commission (FEC), shutting down individual super PACs, and implementing measures such as comprehensive disclosure of campaign funding sources and a public campaign-finance matching system.
Progressive capitalism recognizes that economic and political health are intertwined, and unchecked dominance of large private institutions can narrow opportunities, stifle competition, and undermine representative governance.
This option would provide flexibility, including reduced payments to avoid foreclosures during personal income drops, and utilize government efficiencies in data collection and social insurance to lower homeownership costs.
[26][27] David Sainsbury advocates for a government that strengthens the civil service, implements effective regulations and codes of conduct, and promotes innovation through support for interlinked industries and regional revitalization.
His vision of progressive capitalism involves a proactive government that focuses on creating an environment conducive to growth and opportunity, rather than reverting to outdated "command and control" methods.
As India's economy grows, progressive capitalism could help the government take a more active role in creating a more equitable and sustainable society, aligning with the country's increasing capacity to support comprehensive public services and environmental protections.
[34] He advocates for a vision where progressive capitalism ensures broad access to healthcare, education, and basic support systems, which he views as essential for individuals to reach their full potential.
[6] Patrick Diamond and Roger Liddle argue for a model of progressive capitalism that contrasts sharply with both the "command and control" approach of traditional socialism and the minimalist stance of neo-liberalism.
While Stiglitz's proposals, like enhanced Social Security and public mortgage options, aim to improve existing systems and reduce exploitation, Sawicky argues they do not confront the deeper structural problems of capitalism.
He suggests that Stiglitz's approach remains within social-democratic reform and overlooks the potential for more radical solutions, such as social ownership and comprehensive economic planning, which he believes could more effectively address systemic issues and leverage public sector capabilities.