Quantcast
Connect with us

Two of capitalism’s biggest defenders just confessed that it’s no longer working for a lot of Americans

Published

on

Capitalism has lost its appeal all of a sudden among younger Americans, and even some of the staunchest free market evangelists understand why.

Angus Deaton, the 2015 Nobel laureate in economics, looks at recent books for Project Syndicate by a pair of prominent economists that critique capitalism and prescribe new solutions to reduce wealth inequality.

Raghuram Rajan, a former governor of the Reserve Bank of India who teaches at the University of Chicago Booth School of Business, argues that communities no longer are capable of holding the state or market in check.

Rajan traces that unraveling to around 1970, after the global recovery from World War II began to wind down and governments had little to offer but vague promises that resulted in additional borrowing.

That left governments in Europe and North America too weak to deal with the information and communication revolutions, and they were unable to help workers manage the disruption, Rajan argued, and corporations exploited that employee vulnerability to enrich shareholders and managers.

ADVERTISEMENT

Oxford University economist Paul Collier traces a similar pattern in Britain by focusing on Imperial Chemical Industries, which altered its mission in the 1990s from being “the finest chemical company in the world” to extracting shareholder value.

Collier finds that Britain’s talent and income became increasingly concentrated in London, which leaves behind angry and gutted communities, and Rajan also argued that the elite minority had wrecked communities by gobbling up the market and the state to enrich themselves.

“Behind today’s populist upheavals is a widespread recognition that the economy no longer serves the public good or even the interests of most of its participants,” Deaton concluded. “To understand why, one must identify what has been lost amid so much material technological gain.”

ADVERTISEMENT


Report typos and corrections to [email protected].

Send confidential news tips to [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

Former FBI Director James Comey outlines the burning questions he’d ask Robert Mueller

Published

on

Former FBI Director James Comey has written a lengthy post at the Lawfare blog outlining the most important questions that Democrats need to ask of former special counsel Robert Mueller.

Although many of the questions outlined by Comey are simply asking Mueller to rehash the findings of his final report on Russian interference in the 2016 presidential election, he does ask some questions designed to get Mueller to offer up his own analysis of President Donald Trump's actions, such as, "Did you find substantial evidence that the president had committed obstruction of justice crimes?" and "Did you reach a judgment as to whether the president had committed obstruction of justice crimes?"

Continue Reading

Breaking Banner

Republican running against Alexandria Ocasio-Cortez had lavished praise on her great leadership

Published

on

Only one year after her historic victory over Rep. Joe Crowley, Rep. Alexandria Ocasio-Cortez might face a challenger.

The New York Daily News reports that a Queens Republican who used to support AOC is mounting an election bid to unseat Ocasio-Cortez.

Scherie Murray is a Jamaican immigrant who lives in Queens. She runs an advertising company and identifies as a Republican, the News reports. Murray, in announcing her challenge, accused Ocasio-Cortez of seeking fame at the expense of her constituents.

Continue Reading
 

Breaking Banner

Ivanka bashed by CNN guest for jumping into Trump’s racism scandal late and trying to make herself look good

Published

on

Appearing on CNN, the author of a piece in The Atlantic on Ivanka Trump's disappearing act whenever her father, President Donald Trump, does something offensive, said the first daughter likes to pick her spots when she can be "part of the show."

Speaking with CNN host Ana Cabrera, journalist Elaina Plott said Ivanka's influence on her father has been overstated since the beginning of his presidency and she moves into the public eye when it benefits her.

Continue Reading
 
 
 

Copyright © 2019 Raw Story Media, Inc. PO Box 21050, Washington, D.C. 20009 | Masthead | Privacy Policy | For corrections or concerns, please email [email protected]

Join Me. Try Raw Story Investigates for $1. Invest in Journalism. Escape Ads.
close-image