Where Do We Draw the Line on Capitalism? | BTalk Australia

I find it interesting that in times of financial crisis, we start to question the long term viability of unfettered capitalism, yet we seem happy to leave such questions unasked when times are 'good'.

There is sound argument for strategic government economic intervention in both good and bad times. Indeed, it is arguable that such a steadying hand on the economy may well prevent crises from actually occurring.

The trouble is that the fall of the eastern bloc has been broadly misinterpreted by many as the triumph of unfettered capitalism. This is, at best, a simple answer to what was a very complex situation.

Of course, everyone loves simple answers. They are, well, so simple! Some commentators go so far as to cite Occam's razor as a rationale for simple answers. Yet William of Occam lived at a time when there were few, if any, 'national' economies as we know them, let alone a global economy.

If we leave the global economy solely in the hands of big business, then we deserve what they will inevitably leave us - crises.

Big business is predominantly focused on short term interests. For example, the average CEO stays with a company around three years - usually just long enough to pick up his/her bonuses without having to answer for their blunders. Those bonuses are often calculated using profits and share price increases as at least two of the important factors. Those factors are both 'short term' in nature, especially when the CEO would be expecting to move on in less than three years. Do all CEOs have a long term strategic view? I'll leave you to answer that one.

The share market is populated with people looking to make quick money. By way of example, what else is short selling intended to do?. Therefore, as we have recently seen all too often, the market becomes overheated and someone has to pay for the inevitable corrections (I realise that this is a simplification, but this is a posting, not a textbook on strategic economics).

The only entity really in a position to take a long term strategic view of the economic situation is government. But of course it is populated with politicians who want to be re-elected for another term. And that takes money, often with the larger donations coming from big business.

Government needs to be mildly interventionist if capitalism is not to go the way of socialism, sinking in the mire of the self-interest of those who are supposed to be thinking strategically. Unfettered capitalism is no better that centralised socialism, it is just different!

I will leave you with two predictions for the future. First, if capitalism is still around in 200 hundred years, it will certainly not be unfettered. Second, there will be a widely accepted serious offence of being an 'economic criminal'. Not in the Soviet sense, but in the sense of intentionally placing self interest ahead of society's interest to the extent of causing economic harm to others.

My final comment is simply - I am not a socialist, I am a small business owner who wants to have that small business intact and in a position to pass on to someone else when I retire.

Hello everyone,
Recently I became aware of the 1 million dollar award announced by Mr Richard smith and would like to focus more on the motives behind Mr Smiths endeavour. I believe it is great that wealthy business people want to use their money to create solutions for the future of Australia even if it?s so they can yet again be in the focus of the media, but let?s look a little deeper.
Recently Gerry Harvey made a comment on channel 7 claiming that ?If you haven?t made it by 25 you never will? I would like to ask Gerry if this is a proven fact or is this simply a way to limit his competition. It seems to me that the capped age of 25 by these two gentlemen is either being used for two reasons, 1) Control, or 2) encouragement for young Australians to be more creative and resourceful. Considering their backgrounds I?m leaning to control.
The headlines already call the winner of the award ?Dick smiths million dollar kid?. Let?s say there was a great idea created from this stunt, one person cannot provide a solid solution to the problem of over populating Australia (even if there is one). History suggests if an idea was imposed we would only have to fix the problems caused from that idea in 10, 20 or 30 years.
One issue I consider to be a problem is that there is not enough being done to educate and encourage all Australians from every background and age to live a more self sustainable life style, simple things like growing your own fruit and veg, recycling your own bio and effluent waste, capturing rain water, better energy efficiency just to mention a few.
Also taking efficient approaches to issues such as building self sustained universities in remote areas with their own communities and townships, which would be far more accessible to the indigenous and a solution to the overwhelming interest with international students. This idea is very practical as not only is it a solution to current issues however being a university which will be studying and developing new and more efficient ways of self sustainability.
May I also mention that when we come up with a plan or a solution most of the time we execute it incorrectly for example; insulation and water tanks are great ways to cut down on wasting energy and water but How where these products made?, and what where the made from?
I live near a newly upgraded part of the M1 motor way on the Gold Coast in Queensland and you will not believe what I have just experienced; a massive land and Infrastructure area around me has been and will be torn up and redeveloped on four different occasions at least which include 1) upgrade to train line, 2) installation of desalinated pipe line, 3) upgrade to M1 motor way, 4) upgrade and installation of a major underground power line. I rang my local council to discuss why it is not done all at one time and the response I received was there was really nothing they could do as the above mentioned upgrades and developments are from different private and government entities. What a waste and a lame excuse.
These are difficult but achievable tasks, overpopulating Australia can be a big problem with devastating effects but it is something that can be closely monitored. I feel that a good step in the right direction is to focus on what our land needs to survive and be the world leaders in a neutral and self sustainable life style. Forget diversional side steps by business people attempting to better their image and fill their pockets after all that?s how we got into this mess in the first place.