U.S. capitalism undermined: Rockefeller chair

2024-06-04 Editor : Zhao Li ECNS App Download

(ECNS) -- America has faced key flaws of modern capitalism — slower growth, less fairly distributed, Ruchir Sharma, chair of Rockefeller International said in his recent article What went wrong with capitalism published on Financial Times.

Sharma provides a critique of the current state and direction of American capitalism.

“Faith in American capitalism, which was built on limited government that leaves room for individual freedom and initiative, has plummeted. Most Americans don’t expect to be ‘better off in five years’ — a record low since the Edelman Trust Barometer first asked this question more than two decades ago,” he said.

Sharma has highlighted the detrimental effects of overactive U.S. government on economic growth and productivity, citing an increase in oligopolies and "zombie" companies.

“Three of every four U.S. industries have ossified into oligopolies, dominated by three or four names......Zombies barely existed outside Japan before 2000, and now account for as many as one in five public companies in the U.S.,” he said.

To him, capitalism needs a playing field on which the small and new corporates have a chance to challenge, to creatively destroy old concentrations of wealth and power.

In his opinion, building on overbuilt foundations, U.S. government leaders are trying to please everyone but are more likely to further undermine growth, widen inequality and deepen popular distrust.

He proposes a middle ground approach where the government provides relief during recessions but refrains from excessive intervention during recoveries.

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