The Future of the American Market System

Abstract

Many years ago, an important book was published, titled The Future of Capitalism (Thurow 1996). In that book the author suggested that capitalism will not implode like Russian communism, but that it may stagnate partly because it has no critical competition as a system. He pointed out that there are intrinsic problems of capitalism such as instability, rising inequality, and perhaps, an increasing number of poor people. However, one must question whether, if these intrinsic problems become dangerously widespread, will the system implode? My thinking is that income inequality could increase social discontent, which could easily lead to coups, revolutions, and mass violence (Reich 2010). Thus, it is clearly necessary to take remedial action before it is too late. Again, first and foremost we must understand that the world, its values and attitudes, have changed, but as a society are we changing accordingly? The answer is a resounding no. Since about early 1980s, it appears that in many areas we are going backward.