In response to a global trend toward populism, the champions of capitalism have declared that the free market system must quickly adapt, or face extinction.
Speaking at the World Economic Forum in London on Wednesday, the forum collectively called for an evolution on the way the world views and uses capitalism so that the economic structure can grow along-side the changing political tides rather than oppose it.
Particularly, the growing issue of income disparity is putting pressure on the free market system, creating resentment and social unrest similar to what we have seen in recent years in the U.S.
The World Economic Forum’s Global Risk Report had this to say about the current economic climate:
“This points to the need for reviving economic growth, but the growing mood of anti-establishment populism suggests we may have passed the stage where this alone would remedy fractures in society: reforming market capitalism must also be added to the agenda.”
Basically, in order for capitalism to continue to function, people must believe at some level that they have a fair shot at wealth and happiness within the system. If they feel that the game is rigged against them, they will simply stop playing by the rules.
“The combination of economic inequality and political polarization threatens to amplify global risks, fraying the social solidarity on which the legitimacy of our economic and political systems rests.”
Their conclusion is somewhat surprising considering their relationship with the very wealthy, but apparently the risk is so great that it requires honesty, rather than scheming.
The meeting seemed to embody the politics of Senator Bernie Sanders almost exactly, especially considering how much importance he places on income disparity and economic unrest.
This is an issue that we can’t expect to see the end of very soon, and unless something is done, the politics of our nation will lead to the evolution and even downfall of our economic system.