There has been a lot of turmoil in the world throughout this generation, recession has hit and stock markets have made and broken nations – would it be safe to say that capitalism has failed?
Capitalism has served us well for many years now and it makes sense to let markets decide on the price and value of things. The model has evolved over time however, and it seems that increasing amounts of money are falling into the hands of a select few. With events such as those unfolding in Greece right now, the constant fear of what stock markets will do, and the growing power of corporations – do we stand to bring down capitalism as we know it?
There does not seem to be any truly viable alternative. The problems with capitalism have been laid at the feet of large corporations, but investors have a role to play too. Global corporations these days are truly massive and they have so much money it can buy them the power to wield influence in matters related to their business and beyond, even politics. It’s hard to imagine how smaller merchants survive when one of these big companies comes to town. The reality is that they often get swallowed up, which doesn’t quite fit with the supply and demand framework. If one huge company sells everything, then what choice is there for consumers? Monsanto is a good example, a company that wants to control the global food supply.
When corporations get so big, who controls them? Do they live outside of the law due to their substantial resources?They certainly try to get away with paying as little tax as possible and have imposed their own version of fair pay in many countries. Some would say yes – capitalism is pretty much kaput. This is all well and good if you believe so, but what on earth can we replace it with? Perhaps it’s time we all got thinking…..