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Capitalism is losing support. It is time for a new deal

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Capitalism is losing support. It is time for a new deal

World Economic Forum,

5 min read
5 take-aways
Audio & text

What's inside?

Capitalism is increasingly coming under fire, but what to do about it?

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Editorial Rating

8

Qualities

  • Controversial
  • Eye Opening

Recommendation

The 2008–2009 global recession and its aftermath have called into question the very viability of capitalism. So says economic strategist Zac Tate in this succinct, diagnostic essay intended for the savvy reader as well as the policy expert. He argues that the economic fruits of technology and globalization go to those with capital to invest, leaving those without assets to pay the price for these changes. While always politically neutral, getAbstract recommends this thought-provoking article for its alternative perspective on a highly topical issue.

Summary

Capitalism is failing those who work for a living, according to a 2017 opinion poll taken in the United States, the United Kingdom and Germany. Years of declining wage growth, government bailouts and corporate scandals inform this skepticism, along with a growing awareness of how globalization and technology seem to compensate only the higher echelons of society.

In heeding economists’ claims that unfettered competition would generate wealth for all, policy makers loosened capital controls in the early 1970s and diminished trade barriers in the 1990s. Globalization took off. The role of...

About the Author

Zac Tate is an economic strategist at the Hottinger Group.

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    R. O. 6 years ago
    The tired argument that governments are better at managing capital than the free market. Noneconomic factors rarely increase economic growth or consumer well-being, but subsidize special political interests. Nevertheless, the growing "useless class" of under-skilled workers is a real problem.
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    S. H. 6 years ago
    Yes indeed , the social Justice is needed to decrees the gap between poor and wealthy people , other words these gaps are horrible .
    The global Jinni coefficient must be change moderately .
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    B. T. 6 years ago
    Very good