Going through the recent articles in the FT by Ken Costa and Martin Wolf got me thinking: if not Capitalism, then what? In fact, it has been quite some time that I have been reading anti-capitalist articles all over the media and it makes me wonder: how many protestors actually understand what they are protesting against?
If they are protesting against the current system, we are in a continent that has a strong welfare system, difficult employment rules, strong unions, high taxes, generous pensions, and subsidised access to education & health. This is not capitalism, just ways to live beyond our limited means. We live in a system that has increasingly made it difficult for entrepreneurship to prosper, as pointed out by Luke Johnson. A system of greed and entitlement, be it banks, governments, unions or the people, has led us to where we are.
If anything, I would argue we need more of Capitalism if there has to be prosperity. I would argue that in today's world China is more capitalistic than Europe, and the results are for everybody to see. At the same time it is undeniable that comprehensive regulations, fostering a culture of ethics and a well-aware population are necessary for free enterprise to flourish.
Finally, I would like to say that while free-market played its part, it is absurd to blame it for everything. If the West was living beyond its means, are businesses the only ones to blame? Perhaps not, but they do make a convenient target. The truth remains that, given all things equal, Democratic Capitalism produces more prosperity and equality than systems like Communism, Socialism, Monarchy, Theocracy or any other system that the protesters may know about. The big question is still this: if not Capitalism, then what? Reform, not revolution, is the way ahead.
If they are protesting against the current system, we are in a continent that has a strong welfare system, difficult employment rules, strong unions, high taxes, generous pensions, and subsidised access to education & health. This is not capitalism, just ways to live beyond our limited means. We live in a system that has increasingly made it difficult for entrepreneurship to prosper, as pointed out by Luke Johnson. A system of greed and entitlement, be it banks, governments, unions or the people, has led us to where we are.
If anything, I would argue we need more of Capitalism if there has to be prosperity. I would argue that in today's world China is more capitalistic than Europe, and the results are for everybody to see. At the same time it is undeniable that comprehensive regulations, fostering a culture of ethics and a well-aware population are necessary for free enterprise to flourish.
Finally, I would like to say that while free-market played its part, it is absurd to blame it for everything. If the West was living beyond its means, are businesses the only ones to blame? Perhaps not, but they do make a convenient target. The truth remains that, given all things equal, Democratic Capitalism produces more prosperity and equality than systems like Communism, Socialism, Monarchy, Theocracy or any other system that the protesters may know about. The big question is still this: if not Capitalism, then what? Reform, not revolution, is the way ahead.
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