Modern Capitalism is Broken
Modern capitalism isn’t the same capitalism that built the modern world in the US and Europe.
How is it broken?
It has lost the morality that gave it direction and long term societal value.
It is now amoral. It lacks integrity, trust, mutual respect, fairness, and all the virtues we expect in the personal lives.
Here’s a great example from the UK:
Phones4U was bought by the private equity house, BC Partners, in 2011 for £200m. BC then borrowed £205m and, having saddled the company with vast amounts of debt, paid themselves a dividend of £223m. Crippled by debt, the company has now collapsed into administration. The people who crippled it have walked away with nearly £20m million, while 5,600 people face losing their jobs.
Unfortunately, lots of people seem to think that it is possible to fix this type of amorality with new laws or better incentive systems.
However, as we are seeing again and again, those methods don’t work.
What will work?
Good people willing to stand up for moral capitalism.
A critical mass of people willing to disconnect from any organization or individual who practices an amoral form of capitalism.
Don’t think that’s possible?
You might want to rethink that position. It’s not only possible, but probable in a networked age.
The people that practice amoral capitalism are only able to do so because the economic system grew faster than the information systems needed to make moral economics possible.
That’s changing, and very quickly.