LESSON 3 · Capitalism, Socialism & the In-Between
Models Around the World
The American model leans market-heavy, with limited social safety nets. European models generally offer stronger protections but accept higher taxes and somewhat less entrepreneurial energy. There is no single "correct" version; each reflects different choices about risk and security.

Asian developmental states like South Korea and Japan used strategic government intervention to build industrial champions while maintaining market competition. Each model reflects different cultural values about individual responsibility versus collective obligation.