CBI ex-boss says capitalism not workingThis post was edited by UYA at 2017-10-25 18:05
Lord Adair Turner, who is also a former City regulator, made the comments ahead of the release of third quarter growth figures for the UK on Wednesday.He said the basic idea that "a rising tide raises all boats" had gone wrong.Economic growth was not feeding through into people's incomes and living standards, he said in a BBC interview."Everybody knows that capitalism is not egalitarian, but the broad promise has been that, over a ten year period, you can be pretty confident that a rising tide raises all boats and everybody feels somewhat better off, and that's gone wrong," he told BBC Radio 5 Live's Wake Up To Money programme.Productivity puzzleLord Turner is a cross-bench peer, but has also headed the Low Pay Commission after a career in business and academia.He pointed to a toxic mix of stagnant productivity, falling real wages and rising inequality."The combination of that is a lot of people do not feel the system is delivering for them. This is a big challenge for economists."Why, in a world of apparently extraordinary capabilities of technology, do we have these very low productivity growth rates?"On Wednesday morning the Office for National Statistics will release the first estimate of UK GDP growth for July to September, a key indicator of the health of the eLord Turner said sluggish economic growth is only in part a hangover from the financial crisis and high levels of consumer and corporate debt."The more fundamental thing is, where we are getting growth?"The UK economy has grown a bit in the last five years and we have created lots of jobs, but they have been low productivity jobs," he said.Rise of the robotsLord Turner noted certain sectors such as manufacturing, retail and logistics have managed to improve productivity through automation, replacing human workers with robots. But those workers displaced by technological change have ended up in low paid jobs - Deliveroo cyclists working in the gig economy, for example."I think paradoxically that we should expect to see in a world of huge automation the continued proliferation of low paid, low tech jobs," Lord Turner said."We are going to have to face as a society the question of how do we make sure that people have a good enough standard of living to be equal citizens of society even if the wages they get will be relatively lower?"
I agree with Turner. The solution will be to tax the value of the production of the machines and transfer part of it to the lower-income humans as a guaranteed income. Only thus, will the population have enough spending-money to purchase the products of the machines. And if they can't purchase the products, the owners of the machines will not profit. So, in that way, socialism will make capitalism work. Ted180 Post time: 2017-10-29 11:27 static/image/common/back.gif
I agree with Turner. The solution will be to tax the value of the production of the machines and tra ...
:handshake This post was edited by Ted180 at 2017-10-28 22:50
UYA Post time: 2017-10-28 22:29 static/image/common/back.gif
The current problem with capitalism is that too much of the money is in the hands of a small number of rich people. Rich people have a low Marginal Propensity to Consume (MPC). They simply don't NEED to spend much of their income on consumption. So the money remains out of the general economy. Poorer people DO NEED to spend what they get. It's THEIR spending that creates jobs (and the profits of the rich!). Some call me a socialist. Not true. But a certain amount of socialism is needed to keep capitalism working! If robots become enough like humans there can be marriages will choosing the wrong
robot mean you have to pay it alimony?
God forbid if we end up with robot judges. :Q Ted180 Post time: 2017-10-29 11:37 static/image/common/back.gif
The current problem with capitalism is that too much of the money is in the hands of a small number ...
The rich like to put a "stigma" on socialism.
They will do ANYTHING to keep what they have.
(lie, cheat, steal and even KILL)
America (King of capitalism) is broken and the rich have polluted the democratic system by controlling all aspects of government. They fund and elect people of their choosing and if foreign governments do not "play ball", they send in agents to disrupt the country, even to the point of War!
People need to stand up and call Capitalism for what it is....
"The Slavery of the masses"
:Q robert237 Post time: 2017-10-31 12:20 static/image/common/back.gif
If robots become enough like humans there can be marriages will choosing the wrong
robot mean you ha ...
robots would replace humans.
What will those displaced do?
They will have to take menial jobs serving the rich.