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Business Daily

Capitalism in crisis?

Business Daily

BBC

Business

4.4816 Ratings

🗓️ 15 February 2019

⏱️ 18 minutes

🧾️ Download transcript

Summary

Is the era of globalisation, unfettered markets and billionaire philanthropists drawing to a close? Is the answer to rising populism for the state to tax the wealthy and invest more in the public good?

Manuela Saragosa speaks to three people who say the populist revolts, from Brazil to the US, are symptomatic of an economic system in crisis. Winnie Byanyima, head of anti-poverty campaigners Oxfam, explains why she thinks global jobs statistics mask the reality that many people do not receive dignified work or a decent wage.

Development economist Paul Collier of Oxford University says he thinks corporations and billionaires have lost their way in an era of shareholder value and a growing wealth gap, while journalist Anand Giridharadas claims we are witnessing the death throes of the free market ideology that has dominated global politics since the 1980s.

(Picture: Anti-capitalist protestors demonstrate in Paris; Credit: Kiran Ridley/Getty Images)

Transcript

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0:00.0

Hello and welcome to Business Daily from the BBC with me, Manuela Saragossa.

0:06.3

In this edition, fixing capitalism.

0:09.2

If Donald Trump is able to speak to people and convince people who feel shut out of the American dream,

0:15.4

if he's able to communicate to people who feel shut out of the future,

0:18.9

better than people who actually want to make their lives better.

0:21.6

The other people need to work harder.

0:23.6

The rich, the poor, and everything in between coming up here in Business Daily from the BBC.

0:32.8

Capitalism is in crisis.

0:34.9

So say many of the economic and business headlines around the world. So say

0:39.1

to some of the biggest beneficiaries of the capitalist system. People like Ray Dalio, who according

0:44.8

to Forbes magazine has $18 billion to his name, thanks to the hedge fund he set up, Bridgewater

0:50.4

Associates. Here's Ray Dalio speaking last December at the Los Angeles Summit conference,

0:55.4

a kind of Burning Man meets Davos event. Capitalism basically is not working for the majority of people.

1:02.3

That's just the reality. And yet there's opportunity. So we've got to make it work for the majority of people. And you're in a

1:12.7

situation where, like today, the Fed did a study that 40% of the population could not raise

1:19.8

$400 in the event of an emergency. I mean, it gives you an idea what the polarity is. And we often

1:24.7

don't have contact with that world, but that's a real world.

1:28.2

Clearly, even the ultra-rich are worried about a growing wealth gap. The fact that in America,

1:33.4

for example, much of the country's wealth is held by a very small percentage of ultra-wealthy people.

1:39.4

Many economists and colonists point to the election of President Trump, Brexit, and the rise

1:43.8

of anti-immigrant populists in countries like Italy and Brazil as symptoms that capitalism is in crisis.

1:50.8

Yet many of those same economists will tell you that capitalism has been the driving force behind the most remarkable decline in global poverty ever witnessed in human history.

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