I came upon an insightful piece by Chrystia Freeland on Reuters.com. In the piece she addresses the global economic malaise, particularly its impact on the middle classes of Europe and the United States. She offers an analysis of where capitalism fell short specifically on job creation. Check out her blog post here.
I have to ask, and I have asked before whether capitalism is designed primarily to deliver jobs? I don’t think so, especially if one factor of production, technology, is consistently improving. The mistake of the middle class, whether in the U.S. or in Europe, was to replace the pursuit of income earning, wealth producing capital with settling on short cuts like credit, conspicuous consumption, state jobs, and employer-sponsored pensions. We have, in short, de-clawed ourselves.
If we are to effectively participate in a free market, capitalist society, shouldn’t our first obligation be to store up as much capital as possible?