Monday, January 23, 2012

The faults of capitalism lie in faults in Western thinking

1) "Davos elites to seek reforms of 'outdated' capitalism" is the title of a report (via AFP) in France24.com. "Capitalism in its current form, has no place in the world around us" says the founder and host of the Davos World Economic Forum.

2) Also in the news: "Europe plans new, ‘objective’ credit ratings agency" reports firstpost.com

Here are my comments:

Capitalism, a product of a specific school of thought in The West (see Max Weber's work), has failed to blend with the world in all its forms so far.

In short Capitalism has been proved incompatible with many cultures not only in the world but in Europe as well (see eg "Dolce far riente").

Both Capitalism and Communism, being Western products, were based on faulty foundations of Western thinking such as a quest for certainty and objectivity hence a need to measure and predict that leads to faulty decision making.

In the credit ratings issue, again, "Europe" takes a wrong approach to solving a problem. Each investor should do his/her "own" credit rating, there's no objectivity in credit rating by its very nature.

To be continued ...

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Nick

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