The Power of Capitalism

Gangaweed

Capitalism has indeed worked wonders. However, it is wrong to say that all is well in Capitalism land.

The model of selling time for money (i.e. a professional career) is under threat, not just for blue collar workers, but for white collar workers as well - professional folks.

Similarly, asset prices (i.e. property) has become so expensive that only folks earning quite high percentile salaries can afford to own their own house.

These are failings of capitalism that could result in its downfall.

Generali

Gangaweed wrote: »

Capitalism has indeed worked wonders. However, it is wrong to say that all is well in Capitalism land.

The model of selling time for money (i.e. a professional career) is under threat, not just for blue collar workers, but for white collar workers as well - professional folks.

Similarly, asset prices (i.e. property) has become so expensive that only folks earning quite high percentile salaries can afford to own their own house.

These are failings of capitalism that could result in its downfall.

I keep reading about how the model of paid employment is coming to an end. The problem with this hypothesis is that employment in the UK and worldwide is at an all time high with hundreds of millions of workers having been brought into employment over the last decade or so alone.

If anything I suggest that the next problem the world faces is bringing the next tranche of workers into work so we can lift many of the remaining 700,000,000 out of poverty too.

Gangaweed

Generali wrote: »

I keep reading about how the model of paid employment is coming to an end. The problem with this hypothesis is that employment in the UK and worldwide is at an all time high with hundreds of millions of workers having been brought into employment over the last decade or so alone.

If anything I suggest that the next problem the world faces is bringing the next tranche of workers into work so we can lift many of the remaining 700,000,000 out of poverty too.

The numbers may be at all time highs, but look at the fast approaching crises - home ownership at an all time low, inadequate pension provisions, student debt/ graduate taxes that will impair spending for many people for decades or never be repaid.

These may not be crises now, but they are looming large.

michaels

Gangaweed wrote: »

Capitalism has indeed worked wonders. However, it is wrong to say that all is well in Capitalism land.

The model of selling time for money (i.e. a professional career) is under threat, not just for blue collar workers, but for white collar workers as well - professional folks.

Similarly, asset prices (i.e. property) has become so expensive that only folks earning quite high percentile salaries can afford to own their own house.

These are failings of capitalism that could result in its downfall.

High property prices are not a failure of capitalism, capitalism would allocate more resources to building houses until price was pushed down to marginal cost. It doesn't happen due to the market intervention that is planning policy.

gadgetmind

michaels wrote: »

It doesn't happen due to the market intervention that is planning policy.

Quite so. Technological advances make houses cheaper to build, and cheaper to heat. NIMBY planning policy, and elected officials insisting on "planning gain" (legal bribes) and some not so legal ones, mean that land isn't being made available.

zagubov

Has no city ever planned itself well? Have the best cities just let market forces dictate urban expansion and house building?

Mistermeaner

Planning should be about allocation of land and providing infrastructure. What we have is no no no.

Nothing to do with capitalism

Generali

Gangaweed wrote: »

The numbers may be at all time highs, but look at the fast approaching crises - home ownership at an all time low, inadequate pension provisions, student debt/ graduate taxes that will impair spending for many people for decades or never be repaid.

These may not be crises now, but they are looming large.

These are very much first world problems and the OP is really about how things are vastly improving for hundreds of millions of people.

Gangaweed

michaels wrote: »

High property prices are not a failure of capitalism, capitalism would allocate more resources to building houses until price was pushed down to marginal cost. It doesn't happen due to the market intervention that is planning policy.

Or the fact that property developers aren't incentivised to build enough houses! They build few, prices rise and they generate higher returns, furthermore, land prices rise meaning land hoarding generates profit.

When councils were building houses, developers were competing with the state to build houses, get them to market and ensure they appeal. That is so not the case now!

Inverse incentives operating here.

Gangaweed

Generali wrote: »

These are very much first world problems and the OP is really about how things are vastly improving for hundreds of millions of people.

Not really. In the third world family units are tighter therefore folks don't need pensions to the same degree as the developed world.

If you reread my posts, you will note that I don't disagree with you, but I point out problem areas, which it is dangerous to ignore because they will get worse.