before I go to bed here come a few lines on what I think about capitalism. Let me first say that I work in the private sector and I believe in ingenuity, initiative, risk taking and reward. Having said that, I see serious flaws in our capitalist economic system:
Wrong price signals:
To a Chicago school economist the market is the holy oracle that wisely allocates capital and solves all our problems. I would argue that the markets’ price signals are wrong and useless in many cases. An example: If I know that I will retire in 30 years I start saving today even though I have enough money today and no immediate incentive to do so. The markets do not have a 30 years horizon. Markets have little foresight and react chaotic. Prices of many commodities were low even though it was clear that they would have to increase eventually. However finding alternative technologies takes decades. Putting a flow under certain commodity prices through taxes would have been a much better instrument than relying on the price signals of the markets. The recent price fluctuations in the oil markets make it almost impossible for the industry to bring more oil to the markets nor develop alternatives.
Our debt based capitalist system only knows how to grow and is bound to fail in an environment where growths is increasingly being limited by resource limitations. Resource limitations are staring us in the face wherever we look and unless some miraculous technology comes along rather sooner than later we need to accept the prospects of lower and lower total global economic growth. But: How do we repay all the oustanding debt without growth?
I think due to the interconnectivity of the globalised world, our capitalistic system has become ever more instable and vulnerable to chain reaction events like in 2008. I don’t believe many people really understand the systemic risks in our global financial system because it has become too complex.
You are right that the markets can have limited forsight and can react very badly to sudden shocks. But what are the alternatives to a free market system? (Some of them have been tried, and as far as I can see they just don’t work!)
I think I would agree that you can’t base everything on crazy levels of debt.
However I don’t know whether you are being unduly pessimistic about resource limitations - the jury is still out on that in my opinion…
Let’s just wait and see whether the Guardianistas will show any interest…
IMO it is slightly perverse to ignore the fact that there are other broadsheet newspapers here in the UK with much bigger circulations than The Guardian. But perhaps you buy the idea that their readers are more likely to be language keeners? (I would be very sceptical about this assumption - but perhaps I am wrong.)
I think taxing of fuels and energy consumption would have been a good approach instead of just letting the markets determine the price. I agree though that remodeling our global financial system is no easy task.
Resources, well, decreasing agricultural output gains, decreasing metal ore grades, declining oil discoveries, all speak a clear message. If we pay more for gas, food, energy, raw materials, there is less discretionary spending, less consumption, less investment and ultimately less growth.
Jay, the only point is that there was an article on language learning, more or less a plug for this Noble school, and on the slight chance that they might follow up, I am writing them.
Sure Steve - it seems like a good promotional idea, and let’s hope it works out.
However I’m certain that all newspapers do this type of article. I’m pretty sure, for example, that I can remember reading a lengthy article in ‘The Daily Telegraph’ about Michel Thomas’ system in when it was first released about 11 or 12 years ago. (Admittedly I can’t seem to find it on their website - but maybe their online archives don’t go back quite that far?)
However I reckon Friedemann might like to buy the book reviewed here:
