Type of Government
From ultra-liberalism to state planning — a practical map of economic systems, welfare, and where different countries sit on the spectrum.
4 min read1. Keynes: What Economic Model Does He Represent?
- John Maynard Keynes was liberal, not socialist.
- He believed capitalism works but is fragile: the State should intervene only during crises.
- He did not want a huge government or very high taxes.
- His ideas fit the liberal-social / social market economy model, not Scandinavian social democracy.
2. Opposites of Keynes
On the "more market" side
Milton Friedman & Friedrich Hayek
- Ultra-liberal / libertarian
- Minimal State
- Strong belief in self-regulating markets
- Anti-interventionism
On the "more State" side
Marx, Lenin, Stalin, Mao
- Total state planning
- State controls production, prices, and companies
- No market mechanisms
3. Spectrum of Economic Systems
- Ultra-liberalism
- Liberalism
- Liberal-social (Social Market Economy) – Italy, Germany, France, Spain
- Social Democracy – Sweden, Denmark, Finland
- State Socialism
- Total Planning
4. Free Market vs Regulated Market
Free Market
- Few rules
- Prices and wages set by companies
- Minimal bureaucracy
- State intervenes very little
Regulated Market
- State protects workers and consumers
- Price controls in some sectors
- National collective contracts
- Licenses and inspections
Italy, France, Germany = regulated markets.
5. What "Welfare" Means
- Public healthcare
- Public education
- Pensions
- Unemployment benefits
- Short-time work support
- Family subsidies
- Disability support
- Public housing
- Minimum income
6. Italy's Model
Italy = liberal-social
- Regulated market
- Strong welfare
- Medium-high taxes
7. Switzerland's Model
Switzerland = more liberal
- Very free market
- Light State
- Medium welfare
- Low taxes
- Minimal bureaucracy
8. Social Democracy: How It Works
- Free market
- But State is extremely active in welfare + redistribution
- Very high taxes
- Huge public services
Examples: Sweden, Denmark, Finland.
TL;DR
- Keynes = liberal-social
- Opposites: Friedman/Hayek ↔ Marx/Lenin
- Italy = liberal-social
- Switzerland = liberal
- Social democracy = free market + huge welfare
- Welfare = social protection system
- Free market vs regulated = rules vs safety constraints