Of Capitalism… From Nowhere

The last I read about Capitalism was when I was preparing for my GMAT/GRE essays/ RC’s and GD/PI, with socialism and capitalism being the most common topic chosen by the confused souls who try to confuse others more by picking these! One my colleagues, I think was again in such a confusion, while he was preparing for a debate on weather capitalism has lost its way out! Here are some points I had put forth for him:

Why capitalism has outlived its utility?

  • The world is calling for capital controls, controls in foreign exchange, better wages, end to informalisation, safeguard the public sector companies etc. These challenge the core essence of capitalism.
  • It is capitalism that created “economic crisis”, now that “downturn” has turned into “recession” and even the almost forgotten word “depression” has come back into the vocabulary (Courtesy: LeftCom)
  • The free market credo that has been shoved down our throats for almost three decades, has been replaced by calls for central banks to inject liquidity, for governments to coordinate fiscal stimuli(Courtesy: LeftCom)
  • Capitalistic class was parasitic class and now, the time for the world is to create global community producing directly for human need without money or profit

Why Capitalism may Still Succeed???

  • If you look at the Indian context, the direction in which the caste politics is heading is been more of a co-optation. I.e its heading into a larger system of capitalism. In realm of inclusion, hitherto unheard of social categories are formed and has lead to dominant form of capital accumulation.
  • Nowadays, opposition to capitalistic ideas gets reduced to a liberal, social democratic position which wants to live within capitalism with minor modifications
  • Capitalism is the only option for development because it gives one liberty to chose and even the poor will be benefitted if the true agenda of global capitalism is pursued. The need is for ‘free capitalism, which exists “when politicians pursue liberal policies and entrepreneurs do business” – Norberg
  • It can never outlive its utility because as Peter Drucker says: Capitalism, was never about products and profits, it was all about people and values; and management was doing the right things for the people.

So, is it ‘Long Live Capitalism’?