Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
CONTENT
The PDF version is available for download here.
These historical economic crises have not destroyed or diminished the fundamental human instincts that drive the capitalist system: ambition, initiative, individualism and a competitive spirit. However, humanity's naturally competitive and inquisitive nature can and will be channelled differently as a result of the most recent crisis. The new version of capitalism that will emerge may eventually prove to be even more successful and productive than the one that collapsed in 2008.
CAPITALISM 4.0
There is a fresh appreciation for the role of governments in market economies The dominant economic theories of the 1980s assumed that efficient markets moved automatically towards equilibrium with full employment. Based on this assumption, the government's sole important goal was to control inflation. 2008/2009 showed that banking crises are natural features of the financial system. Market economies cannot function properly without competent and active regulation. Governments and central banks are again beginning to accept the broad responsibilities they mostly abandoned in the 1980s managing growth, employment and financial stability, as well as keeping inflation under control. Governments will be more active but could become smaller, not bigger Despite the government's expanding involvement in economic management and financial regulation, the public sector is likely to shrink rather than grow ever larger. This is because: Governments have run out of money: Given the loss of tax revenue resulting from the Crisis, the health and pensions promises made by successive governments in Europe and America are obviously unsustainable. Governments cannot satisfy advanced economies' complex demands for healthcare, education and personalised retirement planning.
Financial regulation will require mutual checks and balances While the financial system is vulnerable to market failure, governments are also prone to error, political bias and corruption. The new system therefore needs checks and balances that involve regulators and financial markets correcting or at least limiting each other's capacity to make mistakes. There may be "crisis" periods where banks will need government support, potentially unlimited government support.
CONCLUSION
Tremendous global transformations preceded the Crisis The 30 years before the Financial Crisis was characterised by several megatrends: the end of communism; the technology revolution; the arrival of three billion new consumers and producers into the world economy; the ability of the world to live with paper money, not backed by gold. The world economy will continue to grow rapidly With increasing globalisation, technology and social reform in the 21st century, the world economy is likely to become even more prosperous in the coming decades. Advanced economies must evolve to keep up Advanced economies must now come up with the ideological flexibility that is needed to create a new model of capitalism Capitalism 4.0 to build this optimistic future.