Really good supplement in yesterday's Observer on The 2008 Crash. Will Hutton presents 'A Short History of Modern Capitalism' explaining that whilst it has been defined by long periods of growth there have been severe convulsions, induced mainly by a financial crisis. Stage one, lasting from 1899 to 1929 was an age of modernity, characterised by the devlopmennt of the automobile, aeroplane, radio, skyscraper, ocean liner and a whole range of domestic electrical appliances. Then came Convulsion one, the Wall Street Crash followed by the Great Depression. Stage two, recovery followed by reconstruction after WW2 lasted from 1993 until 1973. It was charactersied by government intervention and mangement of economies. Oil price rises and stagflation were the prominent features of Convulsion two from 1973 to 1979. Stage three saw deregulation under Thatcher and Reagan and the rise of globalisation, leading to the financial crisis we have today with too much debt, too little capital and excess greed. (Link to article)
Other sections detail the start of the credit crunch and assess its impact on Britain and how it swept across the world. Will Hutton suggests that ' ...as our financial system lies onthe brink of collapse, it is time to build a new one, based on fairness instead of naked greed, and with long-term commitment to building businesses and supporting investment.' (Link to the supplment 'The 2008 Crash')
No comments:
Post a Comment