Book: Capitalism 4.0 by Anatole Kaletsky, conservative economist


Keeping thinking. Stay alert. Don’t assume.
In ‘Capitalism 4.0’ a bit of both Friedman and Keynes are needed.The world has changed, wealth has shifted, decision points and makers have shifted.

Capitalism isn’t dead. It is different. It is still efficient in core areas but also has a dark side. The era of Reagan and Thatcherism is also long past. There is no going back.

‘Capitalism 4.0’ is not a prescription for the future. There are no ‘do this, get that’ formulas.

The outlook of ‘Capitalism 4.0’ is that we must be prepared to experiment because we no longer know what it all means. We kinda do and yet … we must keep our radar alert, stay focused on economic situations, and when things go wrong then we must be prepared to fix it and to move on.

What will create and keep a strong balance is where strong traditions of democracy exist. For some, success will mean a greater willingness to undertake Keyne’s experimental temperament where government and industry work together. For others, Friedman may be more appropriate. Due to the behavioral impact of how we see things, Keynes or Friedman will work differently with different outcomes.

Keeping thinking. Stay alert. Don’t assume.

Capitalism 4.0 is by Anatole Kaletsky, conservative economist and columnist for the London Times.

More info: http://www.guardian.co.uk/books/2010/jul/25/capitalism-4-anatole-kaletsky

Reviews of ‘Capitalism 4.0’: MarketMinder | VeryClever | Ferris For All

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1 Comment

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One response to “Book: Capitalism 4.0 by Anatole Kaletsky, conservative economist

  1. One reviewer of Capitalism 4.0 took away these nine thoughts as representing the author’s key views/trends:

    1. Shrinkage of government size, despite an expansion of government responsibilities and influence (pp. 10; 266; 270; 274-275);

    2. Sharper distinction between the twin goals of taxation, i.e., revenue raising and redistribution. Choices between higher taxes and cutbacks in social entitlements or big reduction in all other discretionary public activities are inevitable (pp. 231-245; 271-272; 278; 287-290);

    3. Convergence of heath care toward a mixed public-private model (pp. 10; 282-287);

    4. Higher education more likely to become more market-oriented (pp. 10; 271; 281-282);

    5. Expected privatization of many public services such as postal service and infrastructure (p. 270);

    6. Tightening of financial regulations and resumption of the 1980s model of floating currencies (pp. 10; 222-228; 250; 256; 270; 291-301; 329-331);

    7. Competition rather than convergence between the Chinese and Western models of politico-economic development (pp. 11; 257; 304-313; 315-317);

    8. Business support for government subsidies and taxes directed at specific (say, manufacturing) industries or sectors due to massive amount of industrial restructuring expected to happen worldwide (pp. 314-315; 317-318; 322). Structural unemployment in the U.S. cannot be solved without an assertive industrial policy that complements free trade (pp. 250-259; 317);

    9. Rationalization of the consumption of raw materials and fresh water through taxation (pp. 196-200; 317-329).

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