From Capitalism To Ugly Capitalism

Globalisation is often blamed for job losses in the new digital economy. But the real culprit is the move from old-style capitalism to a new type of ugly capitalism.

From Brexit to Trump

Brexit and the election of Donald Trump are seen as the result of growing levels of anger and frustration amongst a majority of disgruntled voters.

And up to a point that is correct, as there is a shift in the way the public view mainstream politics and what they expect from politicians.

But it is not the whole story as an underlying driver is the spread of an ugly form of capitalism with its out workings in low wages and job insecurity.

And while governments make promises about stemming the effects of such threats they fail to temper the nature of the capitalism that is taking hold.

Businesses in all industries are forcing costs ever downward, regardless of the consequences or damage done to the economy.

The process began some decades ago with the privatisation of public sector utilities and services in an effort to stem rising costs and manage trade unions.

But it is moving to another dimension as responsible private ownership gives way to irresponsible private ownership that cares only about profit.

Society is harmed as wages fall, employee numbers reduce and contract work rises to avoid the payment of basic workplace benefits.

From capitalism to ugly capitalism

Globalisation may fuel the growth of capitalism but it is the short-term nature of today’s strain that brings us to a crisis point.

In previous times people worried about the loss of manufacturing jobs but the most vulnerable in society are now squeezed beyond comfort.

The aim of today’s capitalism is to generate as much wealth as possible as quickly as possible for as few people as possible at the expense of the rest.

Nobody, sadly, is prepared to say stop or highlight the extent of the harm caused to companies and their staff.

And there appears to be little appetite to halt the system that is so out of control it breathes despair and hopelessness.

Many people believe little can be done but it is a mistaken belief as the system is the result of choices made in the past and therefore can be changed by future choices.

Without significant change, however, countless jobs will become non-jobs, which will have a devastating effect on the economy.

New type ugly capitalism forces a race to the bottom as fewer people are immune to, or protected from, its negative effects.

In recent years, technology is often held responsible for our economic woes but it is not the main driver of the current difficulties.

So, the type of capitalism that created so many jobs is yielding to a new and ugly type of capitalism that needs to be understood and remodelled.