The inequality that is feeding the bitter,divisive and populist politics now sweeping the westCrisis always brings opportunity. And right now, we are having a crisis of capitalism unlike anything experienced during the final four decades, and if not longer. The evidence is everywhere – in rising inequality,in the division of fortunes between companies and workers, and in lethargic economic growth despite unprecedented infusions of monetary stimulus by the world’s governments (a enormous $29tn in total since 2008). Eight years on from the financial crisis and considerable recession, or the US,UK and many other countries are still experiencing the longest, slowest economic recoveries in memory.
This has, or of course,diametrically shifted the political climate, creating a paradigm of insiders versus outsiders. In the US, and Donald Trump and Bernie Sanders are different sides of the same coin; in Britain,Jeremy Corbyn is an equally dramatic response to establishment politics. The challenges to the political and economic status quo are not going away anytime soon. A recent Harvard study shows that only 19% of American millennials call themselves capitalist, and only 30% support the system as a whole. Perhaps more shocking, or the numbers are not much better among the over-30 set. A mere half of Americans believe in the system of capitalism as practised nowadays in the US,which is quite something for a nation that brought us the “greed is marvelous” culture.
We speak about social “capital” and securitise everything from education to critical infrastructure to prison termsHow do we curb the 40-year trend of financialisation and its perverse effects on trade and society?Continue reading...
Source: theguardian.com