Everybody talks about capitalism -- but what is it? | Kajsa Ekis Ekman | TEDxAthens

Summary

In this thought-provoking speech, the speaker explores the power and impact of capitalism on modern society. Tracing the evolution of capitalism from the post-war period to the present day, the speaker highlights how it has shaped economies, politics, and social structures. They delve into the rise of financialization, privatization, and wage suppression, while questioning whether capitalism can address global crises such as economic inequality, environmental degradation, and energy shortages. The speech concludes with a call to reconsider democracy in all aspects of life, particularly in the workplace, challenging the audience to rethink the current system's ability to solve future problems.

Takeaways

• 😀 Capitalism is the dominant force driving inventions, the economy, and even war, overshadowing democracy in key societal structures.
• 😀 The speaker critiques the illusion of democracy in society, emphasizing how workplaces, housing, and markets operate more like dictatorships than democratic systems.
• 😀 Capitalism is defined as production for profit in private hands, distinct from state-run capitalism or non-profit production models.
• 😀 Unlike markets (where money is simply a tool to exchange goods), capitalism is driven by a formula of 'money - product - more money', where profit is the primary goal.
• 😀 Capitalism is neither inherently good nor bad; it lacks moral responsibility or long-term planning, focusing solely on maximizing profit without regard for climate, economy, or social welfare.
• 😀 Over the last 40 years, capitalism has evolved through imperialism, financialization, privatization, and other strategies to adapt to global crises.
• 😀 The post-war period (1945-1973) saw a rise in profits alongside increasing wages, which helped build a consumer class. However, crises began to surface after the 1973 oil crisis.
• 😀 After the oil crisis, companies responded to declining profits by cutting labor costs, weakening trade unions, and deregulating the financial sector to prioritize profit over stability.
• 😀 The financialization of the economy in the 1980s, marked by deregulation of banks and the rise of speculation, played a key role in creating the 2008 global financial crisis.
• 😀 The European Union (EU) was shaped in large part by industrialists who sought a unified regulatory environment for business, leading to the Maastricht Treaty and the introduction of the euro.
• 😀 The crisis today (the 'three Es': economy, ecology, and energy) presents a challenge that capitalism, as currently structured, may not be able to solve due to its lack of long-term responsibility or consideration for environmental and social needs.
• 😀 The speaker calls for a deeper form of democracy that extends beyond periodic voting to include democratic principles in the workplace and other sectors of society, questioning whether the current capitalist system can truly address the crises it faces.

Q & A

What is the main point of the speaker's argument?

The speaker argues that capitalism, while not inherently good or bad, is a force that drives much of modern society. It operates based on profit, often disregarding responsibility for societal or environmental well-being. The speaker questions whether capitalism can address the crises of economy, ecology, and energy or if democratic governance should be reintroduced to solve these problems.

How does the speaker describe the concept of capitalism?

The speaker defines capitalism as production for profit in private hands. Unlike a market, where the exchange of goods is based on mutual need, capitalism starts with money to create products, with the goal of making more money in the end. It does not prioritize societal or environmental welfare.

What does the speaker mean by 'capitalism takes many forms'?

The speaker notes that capitalism can manifest in different ways, such as imperialism, free-market capitalism, and even 'vampire capitalism,' where resources are extracted without regard for long-term consequences, like in post-Soviet Russia in the '90s.

What happened after the oil crisis of 1973?

After the oil crisis, profits in the West began to decline. To maintain profit margins, companies started cutting labor costs, which led to attacks on trade unions, wage reductions, and a shift toward financialization, which involved deregulating financial sectors to allow for increased profit-making through speculation.

What role did financialization play in the economic changes post-1970s?

Financialization, which involved deregulating the financial sector, allowed banks to lend more freely, leading to the creation of a speculative economy. This shift played a key role in the financial crises that followed, including the 2008 financial breakdown.

How did privatization impact essential services?

Privatization allowed capitalists to enter essential sectors like water, electricity, education, and healthcare, which were previously state-owned. This shift aimed to make profit from services that people rely on regardless of economic conditions, thus increasing the financial influence of private corporations over vital aspects of life.

How does the speaker describe the situation in Sweden regarding capitalism?

The speaker highlights that Sweden, often seen as a social democratic paradise, has gone further than most countries in privatizing essential services. The speaker points out that even entities like McDonald's can now operate schools and profit from state funding, reflecting the country's shift towards capitalism.

What does the speaker suggest as a solution to the current crises?

The speaker suggests that if capitalism cannot address the crises of the economy, ecology, and energy, we might need to return to the idea of democracy in its broader sense. This includes democracy not just in politics but also in workplaces and other sectors of society, challenging the idea that capitalism is the only way forward.

What is the 'dilemma of capitalism' that the speaker discusses?

The dilemma is that, in capitalism, workers' wages are pushed down to reduce costs, but if all companies do this, there will be no one left with money to consume the products. To solve this, capitalism introduces loans, which can lead to financial instability, as seen in the 2008 crisis.

What historical example does the speaker provide to show that capitalism doesn't always lead to crisis?

The speaker references the post-war period (1945-1973), when the West did not experience any major economic crises. During this time, profits and wages both rose, and the working class was able to become consumers, which contributed to a period of relative prosperity.