Capitalism is in crisis | Martin Wolf on Democracy, China and more (part 1)

The former governor of the Bank of England meets the renowned FT commentator for a reckoning on why the relationship between democracy and capitalism is coming undone - and what we can do about it.
We are living in an age when economic failings have shaken faith in global capitalism.
Political failings have undermined trust in liberal democracy and in the very notion of truth.
The ties that ought to bind open markets to free and fair elections are being strained and rejected, even in democracy’s notional heartlands.
Some now argue that capitalism is better without democracy; others that democracy is better without capitalism.
Live on stage in London and via livestream, Martin Wolf - one of the wisest voices on global affairs - will argue that for all its recent failings - slowing growth, increasing inequality, widespread popular disillusion - democratic capitalism, though inherently fragile, remains the best system we know for human flourishing. Most important of all, he will present a programme for renewal, with fresh ideas to rescue our democracy.
Martin Wolf is Chief Economics Commentator at the Financial Times. He was a member of the UK’s Vickers Commission on Banking, which reported in 2011. He holds an honorary doctorate at the London School of Economics and is an honorary Fellow of Nuffield College, Oxford. He is a member of the International Media Council of the World Economic Forum. In 2000, he was awarded the CBE for services to financial journalism and in 2019 won the Lifetime Achievement Award at the Gerald Loeb Awards. His books include The Shifts and the Shocks, Fixing Global Finance and Why Globalization Works.
Mervyn King was Governor of the Bank of England from 2003 to 2013 and is currently Professor of Economics and Law at New York University and School Professor of Economics at the London School of Economics. Lord King was made a life peer in 2013 and appointed by the Queen a Knight of the Garter in 2014. He is the author of The End of Alchemy.

[@subhashbhagwat7411]

Capitalism in the first three decades after WW II was quite different from what followed. It was more democratic in that people’s well-being was not neglected. Ordinary folks in Europe made continued gains in their purchasing power and yet capital thrived as well. It all changed with the elections of 1980 in the U.S. and the rise of Thatcherism in the U.K. In the four decades since, ordinary folks have gained nothing in purchasing power while capital got big tax breaks. If capitalism and democracy are in crisis we know exactly why.

[@HaggardPillockHD]

Wrong. You had a population boom post WW2 which coincided with a productivity boom. However what shifted is that the older generation extracted wealth from the younger generation. House prices are now prohibitively expensive throughout the west, and the capital and property owners tend to be the older generation (50+). In real terms the wages of the younger generation is much lower than was the case.

[@subhashbhagwat7411]

@@HaggardPillockHD The economic growth post WWII certainly benefitted from increased birth rate but those children actually contributed to the economy only starting in the early 1960s. Until then they cost their parents money. The retired generation for the first time had social security income and purchasing power thus allowing the working generation to spend on the children. Women came into work force in large numbers too. The tax structure was much more progressive. That included corporate taxes. All that changed in 1980. Since that year, three major reductions in taxes on high income brackets and corporations with only minor reliefs for middle income people have left the majority Americans with little gain in purchasing power in four decades. The boomers made their gains mainly after the late 1970s after their education and early stages of professional years. Yes, some of them made fortunes but that too happened not in the first decades after WWII but rather in the late 20th and early 21st century, well after the tax changes.

[@flippy66]

@@HaggardPillockHD Not sure how that negates the previous comment.

[@flippy66]

The problem is that the word "democratic" has very much taken a back seat to "Capitalism".

[@techcafe0]

"Capitalism abides no limits; and never solves its crisis problems. It moves them around geographically." - David Harvey

[@steveknowles9871]

Surely by now, we have had enough practical examples of good and bad political systems. There are no utopian solutions, only compromises.

[@aristocraticrebel]

There's no compromise with people who want Europeans replaced.

[@flippy66]

@@aristocraticrebel Who would those people be?

[@aristocraticrebel]

The people who are in charge, unfortunately.@@flippy66

[@stephensuddick1896]

What did you think was going to happen. Most people are either greedy or obtuse. Often, both.

[@ERG173]

Stephen that's not quite right, most corporations and similar are greedy. The Shareholder system causes CEOs to be measured by how much profit is made. As it increases the board tried to buy back shares so they can get more of the pie.

[@piccalillipit9211]

WRONG - 20% of people are greedy - capitalism allows that 20% to run everything.

[@carlosross4547]

This is a dead-on description of Mexico's slide to totalitarianism! Either he has studied in detail the current Mexican situation or his "theory" is truly applicable.

[@Edo9River]

Fantastic intro to Mr. Wolf😊😊

[@kittykatzcenteno7160]

👋 CONTINENTAL EUROPEANS STAY NEUTRAL, STAY SAFE AND WORM. AWAY FROM THE USA, UKRANIAN BLACKMAIL.

[@spankflaps1365]

“Go fash no cash” This is easily demonstrated by looking at the economic performance of Germany, Japan and Spain, before during and after they tried totalitarianism.

[@piccalillipit9211]

Hello mate - is this video worth watching???

[@aristocraticrebel]

They were boycotted by the entire global financial system.

[@ikm64]

This country will not be a permanently good place for any of us to live in unless we make it a reasonably good place for all of us to live in. Theodore Roosevelt - Chicago, IL, June 17, 1912 ...and he for the record was a REPUBLICIAN.

[@scotthullinger4684]

Trump accomplished what Roosevelt envisioned. So did Reagan. And Lincoln. Abe Lincoln was the very FIRST Republican president. You know ... the one whose assassination the Democrats celebrated.

[@aristocraticrebel]

The main reason why people vote for right-wing populism isn't because of economic insecurity. It's because of immigration.

[@Edo9River]

But those people are running towards the worst of our natures

[@aristocraticrebel]

Self-preservation is the worst of our nature?@@Edo9River

[@neilbohrs5990]

Blame the U.S. for their 72 attempts at regime that that led to decades of instabiliies in many countries around the world. Develop these countries and this problem will go away.

[@SaundraRaynor]

Obviously we need to replace the unfair-to-the-masses capitalism with a fairer system like socialism. At least a mixture for a while. Otherwise, expect the frustration and anger to develop into an actual revolution. I have been in the workforce since the sixties in private sector and now, at 80, have little to show for it.

[@siyaindagulag.]

We've the most outstandingly advanced technology ...ever. Still can't get our s**t together. No "AHA!" moment expected. Not among this lot, anyhow.

[@jackbeagle8458]

Technology will not save us.

[@skylaylan]

I agree partially with the part about China! Other than that, Besides saying: Trump is dangerous, what else did he say?

[@shelleyscloud3651]

The move to what Martin calls ‘right wing populism’ (debatable terms) may be surprising to him from an economic POV (again though, debatable) but I really don’t think it is from a cultural pov. Sections of the left have taken a hard progressive swing which has left others of the left with few places to turn. I think it could be illuminating to disaggregated the cultural / economic motivations in political positions with the intriguing possibility that many traditionally left people a prioritising cultural unease above the economic to contribute to this shift. And yes, I’m saying this fully understanding (though I’m not convinced the progressive left do) the relationship between cultural shifts & economic incentives.

[@geoffreynhill2833]

??????????????????????????????????????????????

[@martinfortune9988]

Struth get to the point

[@geoffreynhill2833]

RFK Jr for President! He knows. 🤔 (Green Fire UK)

[@alfred-vz8ti]

you will hear not much relevant to reality here. democracy means 'rule by the citizens,' there is none. capitalism is a polite world for a society mussolini better characterized as 'fascism.'

[@turquoiseowl]

yawn

[@riva2003]

Is this what boomer call the one of the finest brain? How uninspiring.

[@immunitobs642]

Whatchu mean? Can you be more specific is he making mistakes other than mispronounced machiavellism? I thought he was solid.

[@martinhartecfc]

Ah, ageism. The one prejudice that's permitted, apparently.

[@riva2003]

@@immunitobs642 I read his articles on and off on FT. A typical average establish mouthpiece who offers nothing new. However, boomers seem to love him. Well, what can I say?

[@riva2003]

@@martinhartecfc I apologize. Should have put out a 'Boomers trigger warning' first.

[@immunitobs642]

@@riva2003 you can say your point of view, but if you imagine the masses, I think he gives a good speech that easy to understand even for the casual listener.

[@scotthullinger4684]

Capitalism is not in crisis. The WORLD is in crisis. And when the world is in crisis, no economic system can serve us at the highest level. But Capitalism ALWAYS achieves that the very BEST in every single situation. I'll gladly accept a few lump of Capitalism in order to avoid the blatant apocalypse of Socialism and Communism.

[@Teos123]

It is in crisis, it's a world of greed.

[@scotthullinger4684]

@@Teos123 - The crisis is the greed, not the capitalism. People are always greedy regardless of the economic system in use.

[@scotthullinger4684]

@@Teos123 - Greed constantly exists in every situation, and it surely has nothing to do with Capitalism, nor with any other economic system - Every person is materialistic - period. The motto is constantly ... give me, give me, give me. I WANT MORE!

[@piccalillipit9211]

@@scotthullinger4684 "People are always greedy regardless of the economic system in use." WRONG - 20% of people are greedy - capitalism allows that 20% to run everything.

[@scotthullinger4684]

@@piccalillipit9211 - Tell me which person does not have a credit care balance of $10k, $40k, or $65k. My point is ... EVERYONE is a greedy son of a bitch. Rich and "poor" alike. And that top 20% makes decisions for NOBODY but themselves. But if you think I'm wrong ... then name the people who've made decisions for me. Who are they?

[@carlroberts4540]

America.ideology..and.theory.is.what.it.is.china.ideology.andtheory.is.what.it.is.the.difference.is.america.one.is.of.inequality.china.one.is.fairness

[@user-ev9to4xx2o]

❤⅘😮⁹77⁷⁸capitalism.democracy.is..opportunitistic self.important..Jack.as😅😅😅