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The News Agents

What went wrong with capitalism?

The News Agents

Global

Daily News, News, Government, Politics

4.24.3K Ratings

🗓️ 10 January 2025

⏱️ 40 minutes

🧾️ Download transcript

Summary

The bond markets are back in British politics and have made Rachel Reeves’ job even harder. The Chancellor has headed to China amid a backdrop of warnings over market turmoil, stubborn interest rates and the prospect of public spending cuts. But how much of it is her fault? In the short or long term? In this episode we talk to Ruchir Sharma, the author of (so Lewis says) one of the best political books of 2024: 'What Went Wrong with Capitalism'. It is a sharp critique of left and right, but also says that, in their own way, they’ve both got a point about how lousy our economic model has become.

Editor: Tom Hughes

Executive Producer: Louis Degenhardt

Producer: Natalie Indge

Digital Editor: Michaela Walters

Social Media Editor: Georgia Foxwell

Video Production: Rory Symon, Shane Fennelly & Arvind Badewal

Digital Journalist: Michael Baggs

You can watch Lewis's special report on the abortion crisis in America here: https://www.youtube.com/watch?v=df5BCL0ocFE

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Transcript

Click on a timestamp to play from that location

0:00.0

The Newsagents podcast is brought to you by HSBC UK, opening up a world of opportunity.

0:09.4

This is a global player original podcast.

0:13.2

The number one mission of this new government is to grow the economy.

0:17.1

We can't tax and spend our way to higher growth and to greater prosperity. I'm determined to do everything in my power to galvanise growth,

0:25.6

determined for this country to be the highest growing economy in the G7.

0:30.6

That is our most important national mission.

0:35.6

I want the economy to grow faster and stronger. And that's why we're making a number

0:40.9

of reforms on planning, on getting people working, and creating skills. England on our pensions reform,

0:46.9

we're just getting going. When Kirstama and his ministers came to office, they said they had one

0:53.4

priority among all others, growth.

0:57.0

And beneath the noise and the fury of British politics, there is actually almost universal

1:02.1

consensus about one thing, that the British economy is, and has been for a long time now,

1:08.9

utterly lousy, and that growth is the escape route of the nightmare

1:13.8

of a national pie which hardly ever gets bigger, but where there is an ever-strengthening

1:19.6

appetite from the public, from the state, from different government departments to consume what is

1:25.4

there. The problem for Starma and that promise is that the

1:29.6

clouds hanging over the British economy look increasingly heavy and foreboding. Government

1:35.4

borrowing costs are rising. The markets seem convinced that the British economy is stuck in a rut

1:41.0

and increasingly perhaps less convinced that Rachel Reeves has an answer.

1:46.5

In today's show, we ask how much of it, if any, is Rachel Reeves' fault?

1:51.7

But we're also going to be asking a bigger question.

1:54.8

Doesn't this go beyond any government or any chancellor?

...

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