Is capitalism doomed? – By Nouriel Roubini – Slate Magazine
“So Karl Marx, it seems, was partly right in arguing that globalization, financial intermediation run amok, and redistribution of income and wealth from labor to capital could lead capitalism to self-destruct (though his view that socialism would be better has proved wrong). Firms are cutting jobs because there is not enough final demand. But cutting jobs reduces labor income, increases inequality, and reduces final demand.
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To enable market-oriented economies to operate as they should and can, we need to return to the right balance between markets and provision of public goods. That means moving away from both the Anglo-Saxon model of laissez-faire and voodoo economics and the continental European model of deficit-driven welfare states. Both are broken.”
To repeat something that I always do, we must rethink the linkage of markets and capitalism. As Braudel and DeLanda after him have consistently maintained, capitalism as it exists today may be largely anti-market.
Posted: August 15th, 2011 under Uncategorized.
