Why
this Global economic mess? Has Capitalism failed? No, Capitalism hasn’t failed.
But interference in the working of Capitalism is the root cause of global
economic crises.
Today most large
corporations in the manufacturing sector are managed to satisfy stock market
expectations at any cost. Every manufacturing organisation has investment in
land, buildings, machinery, and people. When the market is not growing the
easiest way to increase profit and satisfy stock market is to sack people as it
is the easiest thing to do. When people are sacked and don't find alternative
jobs economy gets affected. The companies in their blind urge to satisfy stock
market will cut more jobs to cut costs and kill the economy further. This is a
vicious circle.
Myopic managements
are not realising that there will be no company in the absence of customers.
Unions and minimum
wages act further to kill jobs by forcing companies to employ automation and
robots. Myopic managements, trade unions, and advocates of minimum wages do not
realise that automation and robots will not require holidays, clothes, soaps, detergents,
processed food, air travel etc. What will happen to the economy?
Bloated government
with massive debts and ever-increasing taxes further shrink the economy and
create job losses.
Capitalism is
blamed for global economic mess. Some economists call for government spending.
Some other economists call for more government regulations. Some economists say
capitalism has failed. All of them are wrong. Capitalism hasn’t failed. But
capitalism has been made to fail by government intervention; following policies
of economists recommending either increased government spending, or increased
government regulation , or controlling money supply, or fixing interest rates,
or by fixing minimum wage rates, or allowing greater say for trade unions; by
allowing mainstream banks to enter speculative business and off balance sheet
trickery.
Capitalism is
closest to human nature. Every human being wants to be free, is born, and dies.
In Capitalism companies will be born and some will die. Problems in capitalism
arise when dying companies are rescued by government but individuals dying in
debt are not only not rescued but downgraded in their financial rating to
compound their problem.
Source Actionable Ideas focuses exclusively on sustainable actionable ideas to make capitalism work to create job opportunities for people.The Goal:Make people find jobs in every country.
Tuesday, April 17, 2018
Why this Global economic mess? Has Capitalism failed? No, Capitalism has 'nt failed.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment