Is Modern Capitalism outdated?

Modern Capitalism is falling apart.

Is 20th century capitalism failing 21st century society?

With the world still shaking from the global economic earthquake, and suffering daily aftershocks, it is not surprising to find more and more people asking themselves whether capitalism is dead. Today we are back to the inequality of 1929 and the Great Depression. High unemployment and the failure of wages to keep pace with living costs are resulting in widespread unrest against elites. For many and especially young people, the business community has lost its moral compass.

There is no doubt in my mind that capitalism is outdated and that today, talent, not capital, should be the main driver of economies. So far there seems to be a worldwide view that capitalism may be the worst form of economy and saying that the system needs fixing is only the starting point. Some believe that a new model based around a triangle of government, companies and society is the way forward. Some others believe that there has to be a more inclusive form of capitalism. The real problem is still that far too many narrow-minded executives that don’t want to make the necessary fundamental changes that are necessary to make capitalism work.

While the shift in economic power to the East is undeniable, no-one should think these emerging markets are great paragons of new model capitalism, spreading wealth and benefits. It’s all lip service unless major action is implemented. There may well be a rising middle class in the Eastern economies, but poverty, disease and a lack of social welfare still abound there, that is without saying anything about corruption, and lack of corporate transparency.

Can someone out there please tell me what the new model of global economy should be, how it might look like and most importantly, how we can prevent it to become a re-fashioned version of our actual, outdated and corrupted economic models?

I guess not!

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7 comments
  1. markmcinturf said:

    Jim, I think you’re dead wrong. Capitalism hasn’t failed…. corruption (and/or crony capitalism) has flawed it. IE: blog “A Frustrated America” and many other similar writings.

    • By 2050, with a predicted population of 9 billion, food production and competition for resources could change the face of our planet. Mankind must learn how to appropriately respond to the crises and opportunities that await us, and grow cognizant of the fact that untamed capitalism can be dangerous to humanity so that we become aware of the need for a radical change in attitude.

  2. markmcinturf said:

    Our founding fathers warned us that what they had created would take great vigilance to defend. Their “Capitalism”, was meant to be tempered with a sense of honesty, ethics and morality for which we have failed them miserably. IT IS WE WHO HAVE FAILED. We have allowed the corruption to be so damaging and so entrenched into our economic and political structure that law enforcement struggles to work against it. The effect is that people (apparently like yourself) are not only not willing to defend it but ready to just give it up. You are confusing a need for a change of attitude with a change away from what’s been the envy of the world when it’s used appropriately. What a sad day for man kind.

    • Dear Mark,

      “Capitalism, in its current form, has no place in the world around us.”

      Those words are not mine. They’re a quote, from a fellow named Klaus Schwab. For the many who are unlikely to have heard of Klaus Schwab before, rest assured, he is no socialist rabble-rouser. He is a billionaire, in fact, and the founder of something called the World Economic Forum, in Davos, Switzerland. The capitalist “model” needs to be radically revised, said another billionaire, David Rubenstein, and if we don’t, “we’ve lost the game.” German Chancellor Angela Merkel, in the keynote Davos address, agreed: “We need to debate new methods,” she said.

      To me and those like me, these words are simply common sense.

  3. markmcinturf said:

    Well, we can debate other methods all we want. What’s common sense to me and others like me is that without first changing ourselves… Corruption, greed and sloth eventually destroys every system. Seems world history clearly bears this out.

    • “Corruption, greed and sloth eventually destroys every system. Seems world history clearly bears this out.”
      I totally agree with this: read “Is Modern Capitalism outdated? (Part Two)”

      As for the part where without first changing ourselves… I will let you work on this.
      As far as I am concerned, it is time for action.

  4. markmcinturf said:

    Wow…. May the schwartz be with you.

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