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Video Description:
Martin Wolf is widely admired as one of the most influential economic commentators in the world. While he sees the flaws in the capitalist system he believes it is worth saving. Yanis Varoufakis is a globally renowned economist and a bestselling author. He rejects economic orthodoxies and advocates for a progressive post-capitalist new order. On February 2023 Wolf and Varoufakis came to the Intelligence Squared stage at the Tabernacle in Notting Hill to discuss and debate their competing views for a better world.
As Wolf argues in his new book, The Crisis of Democratic Capitalism, for all its recent failings – slowing growth, increasing inequality, widespread popular disillusion – democratic capitalism remains the best system we know for what Wolf calls human flourishing. And while progressives such as Varoufakis claim that democracy would function better without capitalism, Wolf believes that the two are complementary systems that need each other if either is to thrive.
Varoufakis by contrast believes that capitalism isn’t working for ordinary people. Political power is wielded by wealthy elites and tech overlords. As he sets out in his latest book Another Now, there could be a different way: one without banks, billionaires, tech giants or stock markets. In his alternative vision employees all have equal shares in companies, everyone is guaranteed a basic income and housing is socialised.
Should we admit that capitalism has had its day and strive for something new? Or can capitalism be made to work in a way that grants us all our fundamental freedoms?
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Main Topic:
The video features a debate between Martin Wolf and Yanis Varoufakis on the state of capitalism and whether it should be fixed or abandoned.
Key Points:
- Martin Wolf's Argument: Democratic capitalism, despite its flaws, is the best political and economic system available. It has evolved over centuries, leading to unprecedented improvements in life expectancy, living standards, and political freedoms. He acknowledges the current crisis and the need for reform, particularly regarding the power of tech companies, but believes that political action and competition policy can address these issues. He advocates for breaking up large tech companies and regulating algorithmic systems.
- Yanis Varoufakis's Argument: Capitalism is being replaced by "techno-feudalism," where cloud capital and algorithms control markets and behavior. He argues that traditional economic concepts like profits and markets are being sidelined. Companies like Amazon are not true marketplaces but rather digital fiefdoms extracting rent. He is skeptical of traditional solutions like breaking up tech companies, as their international nature makes this difficult.
- Common Ground: Both agree on the importance of democracy and decentralized market systems as preferable to central planning. They also acknowledge the need to address the current problems within the existing system.
- China's Alternative: The discussion touches on the rise of authoritarian capitalism in China, which presents a challenge to democratic systems due to its ability to mobilize resources and achieve rapid development.
Highlights:
- Varoufakis introduces the concept of "cloud capital" as a new form of capital focused on behavior modification through algorithms.
- Wolf emphasizes the historical improvements in living standards and political freedoms brought about by market-based systems.
- The debate explores the extent to which technology and algorithms are fundamentally changing the nature of markets and power structures.
- The potential for China's authoritarian capitalism to become a dominant global model is raised as a significant concern.
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Intelligence Squared is the world's premier forum for debate. Here you'll find the best of our past events.
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