Capitalism-How Will it End? 1/2/17
is so entrenched as the major aspect of social organisation that when anyone in
the Greens questions it, this is assumed to be electoral doom. But there are
intelligently argued essays about its limits and its problems. I recently
discovered Wolfgang Streek asking, ‘How Will Capitalism End’ in a heavy but
still readable essay below.
There are three elements of the problem which are should now be viewed as long term trends rather than minor aberrations:
1. Low Growth
2. Rising Debt and
3. Increasing inequality
In ‘Capitalism in the 21st Century’, Thomas Piketty points out that inequality grows because the rate of return on capital is historically higher than the rate of growth, so those who have money get richer faster than the average. So capitalism tends to the concentration of economic wealth. He also notes that because pooper people spend a higher percentage of their money than richer people, poorer people stimulate the economy more than richer people for the same amount of money. So the more inequality grows, the less economic growth there is.
As governments have taxed less and taxes have become more regressive, governments have issued money as bonds, so the rich, rather than pay taxes, lend governments money and get a return on it. Public assets are sold, making ever more money for those at the top. As money is issued without growth, fine profits can be made in the financial sector, particularly on the absence of credible regulatory systems at an international or even a national level.
Streek points out that there are five systemic disorders of advanced capitalism:
2. Oligarchic redistribution
3. Plundering of the public domain
4. Corruption and
5. Global anarchy
So as far as Capitalism is concerned there is quite a lot of think about and talk about, even if it is considered dangerous.
Here is the reference: