Capitalism 2.0

Indian entrepreneurs and readers, I’d love to hear from you on what you envision as Capitalism 2.0, give your somewhat different perspective than those of my American readers.

I started writing this series and am, one by one, tackling the various issues that constitute not only the economic framework, but also the philosophical framework. From Justice to Regulation, from Integrity to Credit, and meandering through the alleys of Character and Logic, we are discussing all the components of Capitalism, and brainstorming about a better system.

The US has taken a disturbingly European-style socialist turn, even as India and China are moving towards Capitalism. In doing so, however, it is critical, that the mistakes of America are not repeated, and most certainly, Europe cannot be the ideal, with all the entrepreneurs fleeing countries like France!

Also, one of the most disturbing elements of American capitalism has been that the system rewards Speculators over Value Creators, and does not penalize Value Destroyers.

I invite you to contribute to this debate, to engage, think, participate, research, study – and be a part of defining the new system as it emerges.

3 Responses to “Capitalism 2.0”

  1. Charan says:

    Be it Capitalism 2.0 or Capitalism 1.0 or Socialism-U, many of these frameworks or theories have failed to place emphasis on basic human living principles such as Character, Integrity and Truth. Businesses have become completely F-ROI (Financial ROI) driven and almost all businesses sight blindedness when caught on wrong foot.

    In the recent economic bubble, I do not find fault at building complex asset derivates based on futuristic projections. The main fault is with those people who have sold false securities and funded uncredit worthy people. Though credit norms might have become lax, I believe many people would have been provided credit based on false claims.

    Sramana, can you talk to Indian VCs/Fund Managers who place bets on Infrastructure stocks in India and ask them why they do so? Do not they have knowledge of how most of these companies operate which are heavily dependent upon Government money? Those are the worst marriages I have ever seen, and I always shiver when a VC Fund or PE Fund announces fund-money (hopefully white) conversion to infrastructure-money (predominantly black).

    What we lack is Incorporation of Humane Principles into Economic Frameworks and we lost the skill of determining true ROI. Imagine a scenario when all the highly skilled/educated people in the Financial institutions are going to say….We are going to bring back Integrity into the system!!!!!!!!!! I bet you no one in India will be provided a loan to buy a house.

    I do not know if Satyam ever should be given a second chance. What do you say?

  2. Economics of Abundance says:

    I think the question is not to figure out if there is a different version of Capitalism but to figure out if Capitalism itself is the best model out there. Any system which does not accept the fact that any accumulation of any kind will be wiped clean in time will not work. People and world leaders are again looking at macro level decisions to figure things out but these issues have always happened and will continue to happen. Even Capitalism Version 100.0 cannot ensure happiness at an individual level. At an individual level one always has enough to eat and a roof over the head. The rest is fluff and ego related. My D#ck is bigger than yours stuff. Leaders would do well to study vedic economics/geeta. Dont understand what all this commotion is about. :-)

  3. Barada Sahu says:

    Capitalism has to take in account principles of sustainability if it has to survive. Capitalism in its true sense is about creation and not taking away what already exists.

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