This death of capitalism thing. That the current difficulties require a fundamental rethink.
An IMF analysis predicts that the UK will be among the worst hit this year and the only major economy to contract in 2010.
It suggests that the global economy will shrink by 0.6% in 2009, compared with 3.8% in Britain. Japan\’s is the only major economy that will fare worse this year, contracting by 5%.
Growth across all G7 nations will be –3.2%, the same as the eurozone economies, while in the US it will be –2.6%.
Next year, the IMF expects the UK economy to shrink by another 0.2%, while the rest of the world returns to growth.
Now note that I\’m not saying that everything is just peachy. I would not try to argue that we cannot make things better. However, try thinking of things this way.
Capitalism of a vaguely liberal sort produces something that no other economic system has ever done. A general and sustained rise in general living standards. Measured by GDP (as above) trend growth is 2.5 to 3%. That\’s each and every year and it\’s been going on for a century or two.
Within that general and sustained rise there have been hiccups, as we have now. We lose some 18 months of such growth every, around and about, 15 years or so. After such hiccups growth is usually above trend and within a few years the lost growth has been made up and we\’re back to our annual 2.5% to 3% improvement.
Yes, even the growth lost in the Great Depression was made up.
I agree that this is very partial indeed. It is most definitely not showing the whole picture. But it\’s still an interesting view, no?
That perhaps we don\’t want to throw out the only economic system that produces a general increase in living standards just because it stutters from time to time?