Is Capitalism in Crisis?
As we enter year five of the global economic recession, is it fair to say that capitalism is in crisis? What, if any, are the alternatives? A Nobel laureate and a federal judge weigh in.
What's the Latest Development?
Nobel laureate in economics and professor at the University of Chicago, Gary Becker does not agree that capitalism is in crisis. Rather, he says, government is in crisis. Despite the existence of regulatory agencies, banks and mortgage lenders ran amok. Now, says Becker, the government must double down on regulation, insisting that banks hold more cash as a buffer against future crises and that mortgage lenders require a larger down payment so that borrowers have more 'skin in the game'.
What's the Big Idea?
Jurist and U of Chicago lecturer, Richard Posner agrees with Becker but takes a wider view of the future of capitalism. He worries that the pace of technological advance will continue to aggravate wealth inequality, since technology concentrates wealth in the hands of those who own the technology, while workers replaced by machines lose their income. Posner thinks capitalism parallels the competition inherent in Darwinian biology and would lament government policy that, by leveling the playing field, would reduce the economy's efficiency.
Photo credit: shutterstock.com
Swipe right to make the connections that could change your career.
Swipe right. Match. Meet over coffee or set up a call.
No, we aren't talking about Tinder. Introducing Shapr, a free app that helps people with synergistic professional goals and skill sets easily meet and collaborate.
Cosmologists propose a groundbreaking model of the universe using string theory.
- A new paper uses string theory to propose a new model of the universe.
- The researchers think our universe may be riding a bubble expanded by dark energy.
- All matter in the universe may exist in strings that reach into another dimension.
Evolution doesn't clean up after itself very well.
- An evolutionary biologist got people swapping ideas about our lingering vestigia.
- Basically, this is the stuff that served some evolutionary purpose at some point, but now is kind of, well, extra.
- Here are the six traits that inaugurated the fun.
For Damien Echols, tattoos are part of his existential armor.
- In prison Damien Echols was known by his number SK931, not his name, and had his hair sheared off. Stripped of his identity, the only thing he had left was his skin.
- This is why he began tattooing things that are meaningful to him — to carry a "suit of armor" made up the images of the people and things that have significance to him, from his friends to talismans.
- Echols believes that all places are imbued with divinity: "If you interact with New York City as if there's an intelligence behind... then it will behave towards you the same way.".
SMARTER FASTER trademarks owned by The Big Think, Inc. All rights reserved.