Capitalism redefined...

Glad you found it useful and interesting, m0nica. Recent anti-capitalism has worried me because there is some justice in people's dubiousness about it but I did not think it was a totally bad thing, as some people seem to. This article helped me feel comfortable about it as a useful human invention again. No-one can deny it has improved people's lives even though it also causes discomforts some of the time.

Thatbags, you must have known that I would respond to this, not only am I an economist, but far back in my past I actually worked for McKinseys(employer of one of the authors) for a couple of years!

I have long been uncomfortable about what is known as neo-classical economics as I was taught it at university. Ther were a number of its postulates that flew in the face of common sense, but I did not have the knowledge or ability to put forward an alternative thesis.

I find this alternative interpretation of how capitalism works very satisfying because as well as redefining how capitalism works works in a way that sits easily with how we experience it, it also accepts that the capitalism is not perfect and should be subject to checks and balances, the regulation we now increasingly have in the financial markets and inceasingly in other markets as well.

This not to suggest that current regulatory systems are adequate or even properly formulated but the fact that we have them is an acknowledgement that there is an awareness in most developed economies that they are required.

I am now squirreling back to the article behind this synopsis to get the full argument