Home > Uncategorized > On global capitalism and the survival of democracy

On global capitalism and the survival of democracy

from Maria Alejandra Madi

In the new millennium, the proliferation of financial assets, with  unstable economic growth, has given way to widespread precarious jobs, income gaps and weaker welfare programs. The same policies that have obliterated social services and kept labour cheap have supported the expansion of short-termism and new global business models in the context of deregulated capitalism.

Besides, the onset of the 21st century represents a new political age  overwhelmed by the violation of democratic ideals of political equality and social peace. Indeed,  democracy has been allowing for election to office but not to power (Madi, 2015). And, as a consequence, policy makers might give priority to their sponsors instead of the needs of citizens – decent work and income equality.

In truth, the current trends in  global capital accumulation and production have shaped a scenario where unemployment, job instability and fragile conditions of social protection increased (Stiglitz, 2011). First, labour-saving technologies have reduced the demand for many middle-class, blue-collar jobs. Second, globalization has created a global marketplace, confronting expensive unskilled workers with cheap unskilled workers overseas and favouring outsourcing practices. Third, social changes have also played a role in the labor market changes, such as the decline of unions. Four, political decisions are influenced by the top 1% who favor policies that increase income inequality.

All these trends do reveal issues of current power, politics and economics in a social context where democratic institutions are being threatened.    read more

  1. July 24, 2018 at 5:40 pm

    “And, as a consequence, policy makers might give priority to their sponsors instead of the needs of citizens – decent work and income equality.”

    I would say that policy makers already give priority to their sponsors and the citizens are left high and dry. However, there won’t be another financial crisis because, as far as I can see, all the regulations are mote and the banks and corporations pretty much do what they want with their finances and with the politicians that they sponsor. The world is being run by money right now and there is no need to worry about financial crises because fraud and corruption are now a legal part of the system. How can there then be another financial crisis?

  2. Edward K Ross
    July 24, 2018 at 11:48 pm

    Reply to Maria Alejandra Madi July 24
    To me as a member of the affected public the problem of global capitalism and the survival of democracy are the most important issues facing equality, freedom and justice in the world today. Therefore in my simple mind this is where the political economic discussion needs to start before rabbiting on with academic postulating. Again from my simple mind the answer is not to find something to replace capitalism with something that is compatible with democracy from my real world non academic logical the answer is to effectively limit the power of the greedy capitalist by democratic means. Here I add a line from C.T.Kurien in wealth and illfare WEA “that economics as a field of study must be a set of clues to probe into real life issues. As Einstein famously stated ;”pure logical thinking can give us know ledge whatever about the world of experience ;all knowledge of reality begins with experience and terminates in it” . Ted

  3. Helen Sakho
    July 26, 2018 at 2:53 am

    Dear Edward, you are not simple-minded as used by elitists. You have a perfect mind, heart and vision, all in one, just like Einstein and other authentic scientists did.

    • Edward K Ross
      July 27, 2018 at 7:39 am

      Thank you Helen Sakho your kind words that encourage me to keep trying to encourage ordinary citizens and stubborn economists that harnessing people power, could do more to reform the excessive of unrestrained greedy capitalists’ than discussing theory and models that do not address the concerns of the people. In making the above statement I am not against academic conversations , but believe the conversation must start with recognising the cause of the failure of the present ruling main stream economic ideology to address the concerns of the people. Ted.

  4. Helen Sakho
    July 28, 2018 at 4:03 am

    You are welcome Edward. A late friend of mine (a victim of torture, a layman by standard definition and a life saver and talented craftsman by any other) once told me: “I may not be as clever as economists, but I can put 2+2 together and get 4, and I know that I am getting poorer by the day”.

    And to keep you and everyone interested going, here is a short extract, very relevant to global warming and economics that is one of my all time favourites by Postumo:
    “Rain in Venice, above a thousand metres, snow. And here, fog seeps from every fissure, three parts cigarette smoke. If memories could be muffled, veiled, if I could cancel the past and leave only a glowing fag-end, symbol of what remains.”

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