Social Economy

Conceptualizing the Social Economy

As a complement to traditional economics, the social economy is a term characterizing an approach [Page 746]to the marketplace that focuses on answering questions that traditional economics does not. Social economists aim to resolve discord and debilitating divisions often associated with the development of capitalism. To this end, the social economy is not about monetary capital alone; instead, it is fundamentally concerned with the social and personal dimensions of economic life.

In its broadest sense, understanding what is meant by the social economy is captured in the 18th century writings of Rousseau. His affirmation of the ordinary life whereby an honest and useful trade yields virtuous civic engagement emphasizes the unity between civic and private life in which the common good is evident everywhere. In 1871, J. E. Thorold Rogers made explicit the common good of the social economy as that which permits the greatest regularity for the largest number of people that work and safety might be the hallmarks of collective existence. Writing in 20th century, Marx intensified the idea by arguing for a more critical evaluation of the relationship between production, distribution, exchange, and consumption. His intent was to expose the problems in capitalism, validate the worker, and offer an alternative in socialism. Today, the social economy is represented in many ways, not the least of which is the prominent call for sustainability in every aspect of business and society. The U.S. Environmental Protection Agency defines sustain-ability as meeting the needs of the present without compromising the ability of future generations to meet their own needs. Sustainability argues for responsibility to all forms of capitalnatural, monetary, and humanas essential to guiding today's decisions as well as tomorrow's vision so that all generations receive adequate provision.

Irrespective of the source or solution, the inner workings of the social economy point toward the importance of gaining a deeper understanding of all forms of capital and their impact on the human condition, especially identity formation. At the heart of this undertaking is a careful examination of how resources, or a lack thereof, affect individual and collective existence. Implicit in this concern is a desire to combat exclusion based on socially useful goods by focusing on the multiplication of resources to bridge human social activities with production and reproduction. For example, advocates for connecting a community to local farmers through a cooperative food establishment argue that it offers sustainable benefits to all participants. Such relationships establish a pattern for cooperative living that supports the local economy while binding the community together around shared values.

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