Americans Distrusting Capitalism!! | Lessons For India?? https://www.youtube.com/watch?v=mEIo91ZHrFU | Deshbhakt Conversation With Ruchir Sharma Aug 21, 2024 Ruchir Sharma - What Went Wrong With Capitalism - where he explores why even in the USA...people are getting increasingly disillusioned with how the economy & capitalism. Capitalism should not be pro-business, but pro competittion. https://youtu.be/mEIo91ZHrFU?t=741 Incumbents can manipulate the regulations. The new ones have a problem.. India has seen a maximum amount of new billionaires in the last few years.
What went wrong with capitalism? https://indianexpress.com/article/books-and-literature/what-went-wrong-with-capitalism-ruchir-sharma-book-review-9408451/ Low interest rates became the solution to every problem. Governments found it cheap to borrow. Except for a brief period under Bill Clinton, no government retrenched spending. So debt became a problem. The political choices in the US are tax cut and increased spending (Republicans) or tax and increased spending (Democrats). The Keynesian intuition that government spending should be counter-cyclical was replaced by a philosophy of a ‘permanent stimulus’.Low interest rates became the solution to every problem. Governments found it cheap to borrow. Except for a brief period under Bill Clinton, no government retrenched spending. So debt became a problem. The political choices in the US are tax cut and increased spending (Republicans) or tax and increased spending (Democrats). The Keynesian intuition that government spending should be counter-cyclical was replaced by a philosophy of a ‘permanent stimulus’.
Cheap money created asset bubbles which fuelled deep inequality and capital concentration. Prices were distorted. Finance began to dominate the economy. Finance also distorted the moral compass: the best and brightest, instead of figuring out productivity-enhancing innovations, were now manipulating complex spreadsheets. Meanwhile, all these were being done in the name of the poor.
https://richmedia.lse.ac.uk/publiclecturesandevents/20240703_1830_WhatWentWrongWithCapitalism.mp3 Sharma says progressive youth are partly right and that capitalism has morphed into “socialism for the very rich.” The broader issue, however, is socialised risk for the poor, the middle class and the rich; government is trying to guarantee that no one ever suffers economic pain by borrowing heavily to prevent recessions, extend recoveries, and generate endless growth. The result is rapidly rising debt and declining competition.