The Purpose of Capitalism
Economist Paul Collier explains what’s wrong with capitalism, and how to make it right
By R. Teresa O’Connell
On November 9, 1989, the Berlin Wall came down. Along with the reunification of a long-divided city, the event marked the symbolic victory of an entire economic and political system: communism was perceived as the last thing standing in the way of capitalism’s definitive global affirmation.
Thirty years on, as the German capital prepared to celebrate this important anniversary (with events including an appearance by David Hasselhoff singing from a Trabant), a wave of mass protests broke out across the world, from France to Hong Kong, from Chile to, most recently, Colombia. The protestors share a deep frustration with the social inequalities, economic troubles, power abuses, and mismanagement caused by years of more or less free market rule.
Capitalism has also, of course, brought with it important achievements: During the past thirty years over 1 billion people have been lifted out of extreme poverty, and access to healthcare and education have increased globally.
But the promises of trickle-down theory have largely failed to materialize: as the rich get richer, the rest are left behind. Growing economic inequality and social…
