Just a thought, but as we look at the causes of the economic crisis, shouldn’t we remember that capitalism is (was?) about building capital and not short-term, pecuniary gain? I’m not economist, but it also seems to me that the engine of functional and enduring economies is a large and vibrant middle class whose membership, as well as the membership above and below, is dynamic. Should that engine fail to start or sputter, then social upheaval is guaranteed. We know this. It’s what drove the Marshall Plan and is central to our maturing doctrine and practice for building state-capacity elsewhere.
One thought on “Isn’t capitalism about building capital?”
Not an economist either (Just a BA in Economics, enough to be naively conversant).But you’re right. Which I guess is why the stewards and scholars of the U.S. economy are sidling towards a significant fiscal stimulus plan – deficits be damned. I believe it’s the right thing to do. We all know what happened to Hoover. Budget cuts in recession don’t stimulate widespread demand. Keynes may be dead, but his ideas still resonate.
Comments are closed.