The Future

The recent financial crisis has reignited the debate about whether capitalism is sustainable and equitable in its current form.  In the following video Robert Peston explores these issues, and considers the future of our capitalist society.  (This is followed by a short summary and discussion.)

The video effectively articulates how the tax-payer has been held to ransom through financial sector failure.  It also demonstrates how this crisis was exacerbated by a bonus bonanza culture which is far removed from the many frugal individuals who now foot the bill.  Of course, today, we are all too aware of the stigma bankers face from a society which resents the long term hardship they have been forced into, as a result of banker decadence and greed.  And so, it seems reasonable to assert that the power of the crowd will elicit a new deal for capitalism, whilst recognising the importance of the financial sector in generating UK economic growth. 

So what will this new capitalism look like?  As Peston suggests, it is likely greater regulation will result in an attempt to create a more stable, ethical and responsible capitalism.  However, given the power of crony capitalism and our bureaucratic political system, is there any reason to think that capitalism will truly change?  I believe so for two related reasons: the power of democracy and the power of media. 

In short, governments under a democratic mandate are now held to greater ransom by the transparency and accountability generated by the media.  This has been evident through the recent government expenses scandal and is manifested continually though informational freedom via the internet, television and other media forms.  Hence, this should encourage government to constrain the destructive power of capitalism and place greater emphasis on well-being rather than wealth.

However, the recent crisis underlined the greatest danger with capitalism – complacency.  For example, The Great Depression was followed by a period of social accountability and regulation which weakened with the passage of time as we became increasingly nestled in fall sense of security.  Then ..............BANG!!!!