Warren Kennedy wrote an excellent letter last week (28 January) pointing out the deficiencies of capitalism as it exists today in the US and Australia, as well as elsewhere.
He correctly points out that shareholders are benefitting to the exclusion of the other stakeholders.
It should be added that today’s crony corporatism also destroys free markets, which are empirically the source of wealth creation.
Adam Smith, author of The Wealth of Nations, the philosophical basis of capitalism, emphasised that unfettered, unregulated capitalism would lead to its own destruction. Governments should be regulating, not promoting the big corporations..
