Stefan Stern - On Management

The debate on capitalism is missing the point

“Let’s abolish capitalism and replace it with something nicer” ran a famous jokey banner at a London demonstration. The gag reflects the apparent impotence of protestors to change anything very much.

Not many people are speaking up publicly for “business as usual” right now. But business as usual is more or less what we see reported on the evening news and in particular in the financial pages. Some modest and potentially fruitful attempts at reform are mooted. But on the whole inertia rules the day.

Capitalism. Big word. Meaningless to most people, who probably rarely stop to reflect that they are living in a “capitalist system”. (I am reminded of Monsieur Jourdain, Moliere’s “bourgeois gentilhomme”, who is delighted to discover he has been speaking prose all his life – Par ma foi! Il y a plus de quarante ans que je dis de la prose sans que j’en susse rien…”)

Perhaps this is one of the reasons why the current debate on capitalism has failed to penetrate popular consciousness all that much. All three of the UK’s main party leaders have now made speeches on the topic (here, here and here), with each adopting his own particular angle and tone. But the voters, so far, seem mainly to have shrugged and carried on without being meaningfully engaged.

If politicians and campaigners want to get through to people, they should probably stop talking about “capitalism”. “Business” is a more familiar term, but that is also only part of the story. The point being missed is that we are really talking about a “quality of life” issue here: how we live and work today.

That is where the dissatisfaction and anxiety lie. As Channel Four News’ Faisal Islam showed in this post, supported by Resolution Foundation data, life is simply getting a lot harder for large sections of society. The deal doesn’t seem to work any more. It’s all getting a lot more expensive. Our own prospects are not improving. Our children’s future looks difficult.

And in Europe, where since the war we have grown up with certain fixed assumptions about what we should expect from life, this change in fortunes is proving quite shattering. When the new Italian pensions minister cried at a recent press conference as she explained the changes the government was going to introduce it summed up the shock many people are experiencing.

Don’t wait for “business”, collectively, to change things. But leaders – including business leaders – should be speaking up and reassessing our priorities. How do we want to live? What really matters? What does the word “career” mean in the global era? What sort of future are we building?

We should not be squeamish about discussing our quality of life – or the lack of it. The politician who engages most convincingly in this area will clean up. That, presumably, is a prize worth fighting for.

About the author

Stefan Stern has been writing about business and management for the past two decades, most recently for the FT, where he wrote a weekly column between 2006 and 2010. He joined Edelman in August 2010 ...show more
  • Sam Dodsworth

    Reads like a vapid defence of the status quo to me. Unless “reassessing our priorities in the global era” means something other than resigning ourselves to getting shafted while our employers continue to do very nicely, thankyou.

  • http://twitter.com/SteveRatcliffe Steve Ratcliffe

    I replied to a tweet last night to Channel news asking for views on new capitalism, saying ”@cathynewman new capitalism is a patch up job, reinvention of a failed system=acknowldgmn’t of polarised thinking, we need 21Cnt’ry ideology”

    The sad truth is you’re right, if you just followed the news, business has no stake in politics or shaping the future of policy or the economy for that matter. Businesses generally speaking (and I don’t mean multinationals/banks) are as locked out of influencing decision makers as are voters. And if we continue this divided path I really can’t envisage things easing up fro business of the rest of us. 

    What we need is a break from entrenched early 20th Century ideology. Ask me my politics, I’m left, but to be honest that bears no relevance to the mainstream left or the hard left the latter being as delusional as many right wingers. 

    In the 21st century and looking back at the achievements of the 20th Century I do not see where the leadership is coming from to redefine society and provide us all with economies that are equipped to face the challenges we need to meet. Add to this the BRIC countries desire to replicate Western Economic Models an intervention or break from left or right convention cannot happen soon enough or the shift will only need to be greater. 
     
    The problem as I see it is these polarised conventions are now dangerously innate. What we all need is a movement to challenge convention, a movement that is not exclusive nor does it align itself will particular ideology. You may say that I am describing occupy but I’m not because even they are stuck in convention but the fundamental point that they make is correct. 90 years of a project (arguably a lot older) and it is still failing and no one can tell you how to fix it, suggests “Convention” has failed. Far too many decision makers are clinging on to its last breath because they are too afraid to admit Capitalism is a walking corpse. Until the key decision makers acknowledge that I don’t think you will hear a credible or serious effort to discuss the alternative.