Is capitalism dead?
Over the last few weeks we have seen government around the world nationalising banks and other prominent businesses, bailing out whole sectors and generally becoming more and more involved in businesses and financial issues. There is a feeling that the capitalist movement is now under threat and many people believe that capitalism is now dead in some areas of the world. Is this true?
There's no doubt that the capitalist movement has been severely wounded over the last few months and would have collapsed had it not been for state funded ventures and state funded rescue packages. From the likes of Dubai, which was built on $80 billion worth of debt, to the UK banking arena, which has swallowed hundreds of billions of pounds taxpayer's money, there are prime examples of capitalism in disarray at each and every corner U-turn.
However, capitalism has been around for centuries and we remain a vital element of the worldwide economy and a multitude of local economies around the world. The animal which is capitalism may well be wounded but it will live to fight another day and it will be back. While this is more than a "setback" there are very few, if any, scenarios which could kill off capitalism forever.
Share this..
Related stories
Is today the day for an interest rate reduction?
Today is D-Day for the UK economy with high hopes that the Bank of England will reduce interest rates by up to 1% to try and kick start the UK. While the Bank of England have been fairly quiet over the last few days just a short time ago they did indicate that perhaps interest rates have not fallen quickly enough in the UK so far.
This is the strongest indication yet that we are ent...
Could British Airways really go under?
As British Airways flights for survival with mounting losses, a balance sheet stretched to the limit and a union strike on the way there are serious concerns for the future of this British institution. At this moment in time it seems as though the company is taking one step forward and two steps back in its fight to regain forward momentum and look to the future with confidence.
How...
Cadbury plays tough with potential Hershey takeover bid
The weekends press is full of speculation regarding the future of Cadbury but one thing is for sure, according to informed sources, the Cadbury directors would be unwilling to accept an offer of £10.3 billion from US outfit Hershey. Many people believe that Hershey could well be the "white knight" which Cadbury has been looking for although the rumoured £10.3 billion offer would not appear to fi...
Read MoreHSBC chief executive suggests UK bailout is wrong
Michael Geoghegan has sprung to the defence of HSBC suggesting that the company's more conservative lending policies over the years have now proved to be perfect with HSBC relatively untouched in balance sheet terms from the ongoing worldwide slowdown. He also suggested that the UK government's £37 billion bailout package will encourage banks to return to more risky lending operations in due cour...
Read MoreIs the retail price index fall a help or hindrance?
As we covered in one of our earlier posts, the Retail Price Index (RPI) is still in negative territory and as a consequence we will see Rail season-ticket prices fall across the UK from January 2010. While a negative RPI, which effectively means that prices are falling, is still a good thing for UK consumers it can and will cause havoc in the business arena.
In general terms it is v...