Post Normal

Toward a New Stage of Capitalism

The system based on 20 percent of the world exploiting the remaining 80 percent is no longer viable.
A New Stage of Capitalism
Goldman Sachs Ad. Harvard Business Review. January/February 2011

Audio version read by George Atherton – Right-click to download

Kazuo Mizuno, former chief economist for Mitsubishi Morgan Stanley Securities, has created a graph in which the vertical axis shows the world’s real GDP per capita and the horizontal axis shows the long history of humankind, illustrating – in one graph – the changes that have taken place in the past one million years. From this, Mizuno has managed to tease out a thrilling argument.

The modern period began in the 1600s, with the age of exploration in full swing. The principle on which society was based during this period was capitalism, a system in which a handful of people in the first world – less than 20 percent of the global population – bought cheap resources from the people in the third world constituting over 80 percent of the global population, in turn selling products at high prices.

The system worked well for 400 years, which was why developed countries flourished until the 1970s. However, Mizuno argues, with the emerging self-assertiveness of oil-rich countries and falling profit rates among major corporations, capitalism entered a stage of stagnation after peaking in 1974.

Leading the world in this new stage of capitalism were the US and Japan. When real investment hit a wall, they had nowhere to turn but bubbles. Japan dove straight into a real estate bubble in the 1980s, with the US following suit in the 1990s in the realm of finance. The bursting of both bubbles brings our economic history to the present day.

As a result of the globalization of the world economy, the system based on 20 percent of the world exploiting the remaining 80 percent is no longer viable. Mizuno says in his book, “Hitobito wa naze gurobaru keizai no honshitsu o miayamaru noka.” (Why do people misread the global economy?) It is obvious that Japan, which has heretofore been at the head of the global pack, should be the very nation to move on to the next stage first.

Over the next few years, Mizuno says, Japan will provide a “preview” of what is to come in the rest of the world, as we move into a new phase of capitalism.

This article is based on a column by Yoko Kato in Japan’s daily Mainichi newspaper. She is a professor of Japanese history at the University of Tokyo.

18 comments on the article “Toward a New Stage of Capitalism”

Displaying 1 - 10 of 18

Page 1 of 2

Allen Green

How many times must capitalism fail before its abolition? The power elite will hold onto their beloved system, claiming a the new revised capitalism is the solution.

"He’s (Marwan Muasher) a former high Jordanian official who’s head of Middle East research for the Carnegie Endowment. He said, "There’s an operative principle in the Middle East." He said, "The principle is, as long as people are quiet and passive, we’ll do whatever we like." That’s a general principle of statesmanship that applies here, too. As long as people are quiet and passive, we’ll do whatever we like. Now, of course, if they stop being quiet and passive, we’ll have to adjust somehow. Maybe they’ll even throw us out, but we’ll try to hang on as much as we can. And that’s what we see going on in the Middle East. That’s what we saw going on in Latin America. It’s what we see right here."
-Noam Chomsky
on DemocracyNow! February 17, 2011

Allen Green

How many times must capitalism fail before its abolition? The power elite will hold onto their beloved system, claiming a the new revised capitalism is the solution.

"He’s (Marwan Muasher) a former high Jordanian official who’s head of Middle East research for the Carnegie Endowment. He said, "There’s an operative principle in the Middle East." He said, "The principle is, as long as people are quiet and passive, we’ll do whatever we like." That’s a general principle of statesmanship that applies here, too. As long as people are quiet and passive, we’ll do whatever we like. Now, of course, if they stop being quiet and passive, we’ll have to adjust somehow. Maybe they’ll even throw us out, but we’ll try to hang on as much as we can. And that’s what we see going on in the Middle East. That’s what we saw going on in Latin America. It’s what we see right here."
-Noam Chomsky
on DemocracyNow! February 17, 2011

Anony +1

"How many times must capitalism fail before its abolition?"

Until we find another solution. Which we have not. So for now, recessions, which are perfectly natural and unavoidable in this thing called reality, will be the lesser of evils, compared to the failures of more government dominated systems.

Anony +1

"How many times must capitalism fail before its abolition?"

Until we find another solution. Which we have not. So for now, recessions, which are perfectly natural and unavoidable in this thing called reality, will be the lesser of evils, compared to the failures of more government dominated systems.

Anonymous

- can someone please tell me if this article is correct? here's a list of people I emailed and got no answer but the article's info is referenced as coming from this german insurance company allianz which is why I emailed people in europe thinking they might be honest with me - if it is true then this article here on adbusters may need to be rewritten unless the dollar somehow becomes insignificant
http://en.wikipedia.org/wiki/List_of_sovereign_states_by_external_assets

[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected]

Anonymous

- can someone please tell me if this article is correct? here's a list of people I emailed and got no answer but the article's info is referenced as coming from this german insurance company allianz which is why I emailed people in europe thinking they might be honest with me - if it is true then this article here on adbusters may need to be rewritten unless the dollar somehow becomes insignificant
http://en.wikipedia.org/wiki/List_of_sovereign_states_by_external_assets

[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected],
[email protected]

Anonymous

I do agree something is going to have to happen 3 years from now.But exactly what?Is my question. Maybe it would take a little longer for it to marinate.Like in 2007 It didn't fully hit where I am until 2008 2009 2010.This year was a change of something.The evil ghosts I guess.5 years from now there will be no economey.Or it will be slowing down.If the government doesn't care to be bum's

Anonymous

I do agree something is going to have to happen 3 years from now.But exactly what?Is my question. Maybe it would take a little longer for it to marinate.Like in 2007 It didn't fully hit where I am until 2008 2009 2010.This year was a change of something.The evil ghosts I guess.5 years from now there will be no economey.Or it will be slowing down.If the government doesn't care to be bum's

Pages

Add a new comment

Comments are closed.