Tuesday, 7 May 2013

Is Capitalism Dying?

So now we have the most powerful and cohesive organizations on Earth devoted to the pursuit of profit above all else and frequently at the expense of public interest.

And their unprecedented wealth threatens to neuter democratic checks on their behavior. In theory, corporations are still responsible to their shareholders. In practice, they’re beholden to no one but boards of directors handpicked by senior managers.

As capitalism enriches capital at the expense of labor and Wall Street at the expense of Main Street the winners are busily erecting anticompetitive toll gates all across the economic landscape, be they in the form of lower borrowing costs enjoyed by the still-too-big-to-fail banks or the higher health insurance premiums facing small businesses.
This is not a recipe for long-term economic success. If capitalism means lots of private ownership and fair, transparent markets, then its future remains bright. But if a zero-sum, winner-take-all struggle for leverage is the name of the game, those games seldom conclude as the winners might hope.

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