Capitalism in the 21st Century

The post-world war2 era was marked by the fall of imperialism all around the globe but this was followed by other conflicts with the major powers of the world being divided into the US or the Soviet bloc former representing the free markets and capitalism although the degree of it may vary state to state and the later representing the socialist or the communist economic ideology. In an idealistic scenario, both economic systems sound full proof in their objectives but in reality, no system is reliable, and communism because of its rigidity and complexities saw its fall all around the globe. Capitalism because of its better adaptability was able to thrive. The final nail on the coffin of communism was the fall of the Berlin wall and the fall of the Soviet Union. Further, the shift of Communist China to state-sponsored capitalism under Den Xiaoping shattered whatever the communist hopes were left. This was marked by the liberalization of the economy in several countries like India, Vietnam, etc. By the end of the 20th-century capitalism was the clear winner with successful models like Singapore and South Korea and on the socialist and the communist side, most of the models were unsuccessful from the Soviet Union to China to India.

Just when things were seeming to be perfect for the free-market crusaders and the torch bearers of capitalism, it showed its ill effects. The rise of Donald Trump in the US and Brexit in the UK marked the return of protectionism in the world with the intention of diverting the monetary and employment benefits to their respective countries. In addition to this, the rise of the woke liberalism and the newfound romanticism with socialism with the rise of leaders like Bernie Sanders and Jeremy Corban has further cemented the arguments against Capitalism. Whatever hopes were left with Capitalism were shattered by the Covid-19 pandemic. The pandemic forced the nations to re-look their dependency on external markets and get their supply chains correct. The job losses, the rising healthcare cost by the pandemic, and lack of social security have further triggered the masses against markets. This has triggered people in the countries where the markets were yet to be mature and the socialist rhetoric of the corporate takeover of the state has begun to resurface.

The reality is that in a world of cultural, geographical, racial, ethnic, and host of other diversities, thought that anyone system can benefit every country or a state is naive. But having said so and looking at the history of the systems, capitalism or the market system because of its adaptability and inclusivity is still prevalent and must prevail. The degree of it can be debated or discussed and may depend on a number of factors such as geography, culture, national ambitions, and character, ethnicity, etc. The reality and the need of 21st-century capitalism are that it needs to shift its focus from the profit of the shareholders to the broader base of society. This thought must not be misunderstood as social work by the organizations as a company by its very nature is meant to make profits and not expected to do charity and there’s nothing wrong with the profits. Profits are what drive innovations and also generate the much-needed employment whose proof is attributed to the fall of socialism. But to protect markets in the 21st century from excessive protectionism and woke liberalism, the states need to step up and play the game on the front foot. There is a requirement for the clear demarcation of the role of the state in the market economy. People on the left of the ideological spectrum tend to forget that the role of the state is not to indulge in business with the same people those who elect but to provide well fare. 21st-century capitalism needs to work for narrowing down the gap between the poor and the rich and change the trend of rich getting richer and the poor getting poorer to rich getting richer and the poor getting richer. The states need to work on providing social security to the masses through targeted welfare, affordable healthcare, and education. Healthcare and being a necessity and education being the backbone of society and eventually, civilizations must be within the reach of all.

So, in order to make capitalism thrive in the 21st century, it needs to reshape itself and work on building confidence in the public against their genuine and deepest insecurities of unaffordable healthcare, education, and basic necessities. And there is no end to the rhetoric by the communists and socialists and that can be ignored and thrashed by the work on the ground.