Rethinking capitalism

Posted by $ puzzlelady 6 years, 7 months ago to Economics
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Paul Tudor Jones in a TED talk suggests not thinking only of profit but of fairness to get back to what classical capitalism once was. He claims to love capitalism. Your thoughts?
SOURCE URL: http://www.ted.com/talks/paul_tudor_jones_ii_why_we_need_to_rethink_capitalism


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  • Posted by dbhalling 6 years, 7 months ago
    I watched less than five minutes and this guy has no idea what capitalism is or how wealth is created. He points out a number of legitimate problems, but he thinks the US is capitalist country today. Rand was clear that a capitalist country is one that protects the natural rights of people. A country where the government spends almost 50% of GDP is a fascist country, not a capitalist country, a country with legal tender laws and a central bank is not a capitalist country, a country that spies on all its citizens is not a capitalist country, a country where everything is regulated including whether you wear seat belts, whether you property is a wetland, where you cannot sell a bike without retro-reflectors is not a capitalist country. This guy made his money trading commodities, which is okay, but is not how wealth is created - at best it is a maximization system but not a wealth creation system. This guy is either fraud or a pawn.
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  • Posted by CircuitGuy 6 years, 7 months ago
    At the beginning he talks about speculative manias. We shouldn't abandon capitalism because of this one phenomenon.

    Then he says profit margins have creased because of a maniacal focus on earnings. I think automation is responsible for higher return on equity and "income inequality". Being less focused on earnings, IMHO, won't address this issue.

    Some of the problems he describes, like the shortsighted focus on quarterly earnings or businesses hurting the environment, stem from executives holding a small share of the businesses they manage and having to answer to shareholders. Jones talks about *corporate giving* as an answer to the problems, but that's actually an example of the problem of separate management and ownership. If I own shares of a company, it's for them to use my capital to make money. If I want to give to humanitarian causes, I should do it myself or give it to a humanitarian enterprise. I don't need The Home Depot or Apple acting as an intermediary for my humanitarian dollars.

    Jones hits on a real danger regarding rising return on equity leading to more wealth disparity. If I'm right the cause is automation, the trend will continue, and it will cause people to look to radical proposals or to blame capitalism itself.
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  • Posted by j_IR1776wg 6 years, 7 months ago
    What muddle-headed garbage. It is the same old Right to own property versus the needs of the less productive argument. He fails to mention that the approximate $18 trillion redistributed (stolen) since LBJ's War on Poverty hasn't changed the percent in poverty in the last 50 years, the insane debt, or the runaway regulatory agencies as causes of "income ineqality". I'm not sure Karl Marx could have kept a straighter face while spouting this crap.
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