Read on Twitter
for a 
morning (a short thread):I think we all need to be much more precise about what we mean by âcapitalismâ.
Itâs no longer weird or controversial for even mainstream public figures to say stuff like âcapitalism doesnât workâ.
What they generally mean by this is âall the problems weâre facing are actually a function of our economic systemâ. Which is basically right.
However simply using the label âcapitalismâ isnât that helpful.
However simply using the label âcapitalismâ isnât that helpful.
The problem is that:
a. It immediately illicits the (equally correct) binary counter-argument âyes but communism also doesnât workâ.
b. âCapitalismâ is such a huge blurry umbrella term that no one really knows quite what to do about it, or where to start, so not much changes.
a. It immediately illicits the (equally correct) binary counter-argument âyes but communism also doesnât workâ.
b. âCapitalismâ is such a huge blurry umbrella term that no one really knows quite what to do about it, or where to start, so not much changes.
Interesting trivia (learned via @chezcorbay): the term capitalism was actually first coined by Marx as a critique of government-by-owning-classes, not as a consciously designed economic model. For example, Adam Smith does not use the term anywhere in The Wealth of Nations.
When you look closely at any given part of our broken economic systems (in my case, land, planning, construction and digital platforms, but Iâm guessing true of other areas too?), you realise:
1. Pretty much all systems contain competition, collaboration and cooperation etc whether you like it or not. And they all have value. Itâs not either / or.
So itâs about which incentives we want and which we donât.
So itâs about which incentives we want and which we donât.
2. There is a world (
) of difference between ownership rights that confer rights to exploit and extract ÂŁ ad infinitum and ownership rights that confer rights of use and responsibilities of stewardship.
) of difference between ownership rights that confer rights to exploit and extract ÂŁ ad infinitum and ownership rights that confer rights of use and responsibilities of stewardship.
3. There is a world of difference between free & fair markets that are well regulated by the state, and rentier monopolies that are protected by the state.
4. There is a world of difference between centralised vs distributed systems / markets / ownership.
5. There is a world of difference between the behaviour of companies that have external shareholders expecting unlimited profitable exits / dividends and companies that.. donât. Even family-owned companies behave quite differently.
