Capitalism crises

Overview of CAPITALISM Crises

Important elements of Capitalism – such as competition – nevertheless cause increasingly dangerous lack of control across the world economy and require Unelected Responsibility as a counter-measure

 

Escalating financial crises are inevitable because deeply-established systemic-threats in the banking system remain unchanged and largely unchangeable

  • The realities of modern banking encourage individual chronic short-termism with little regard for long-term consequences or impacts on others
  • Although within the industry its shortcomings are well-recognized, on balance it suits banks to leave things as they are
  • Governments and regulators have little freedom to change the banking system without risking triggering alternative financial crisis themselves

 

Unrelenting competition has addicted modern corporations to change initiatives of which 70% fail causing further damage such as change-fatigue – which makes it hard to avoid backlashes

  • Driven by international markets, today’s corporations necessarily compete on being able to change faster and more effectively than their rivals
  • But lack of sufficient control means that most major change initiatives fail, leading to progressive change-fatigue and difficulties avoiding backlashes

 

Unintended major distortions of perception caused by how the media have to report stories and interact with governments are warping political control

  • Developments like 24/7 Rolling News inadvertently cause gross misrepresentation of the true balance of what is happening in the world
  • Systemic distortions in reporting ultimately result in insufficient checks and balances for the political process as a whole
  • Because the government and news media are both crucial to each other there can be increasingly risky conflicts of interest

 

Widespread misinterpretation of how competition optimizes the world economy risks crucially important long-term solutions being irretrievably lost

 

Capitalism crises need UNELECTED RESPONSIBILITY – corporations fulfilling a duty of due care over communities they impact

  • Just as legally a company is treated as a separate individual so it should also carry much the same social obligations as members of the broader community
  • Global accountability and resultant global consequences need to be unavoidable even for corporations attempting to play one country off against another
  • Each industry should itself propose the best ways to demonstrate and regulate Unelected Responsibility – governments and the public will anyway then ensure that they do
  • The News Media must find ways to avoid competitive-pressures unintentionally leading to bias and misrepresentation – because it will increasingly be held far more accountable
  • Financial-services must find how to play a truly-strategic role within the global economy – and not be incentivized toward short-term culling of temporary-weaknesses
  • The success of self-regulation and external measures must be that they change the hidden logic that drives the ‘unwritten rules’ of The Market itself – otherwise they will fail