Mohamed El-Erian on Capitalism: To fail on one count is a problem

The crisis in capitalism is caused by two distinct failures: the inability of the system to deliver sustained prosperity through economic growth and jobs; and the perception that it is grossly unfair and socially unjust.
To fail on one count is a problem.
 

Yet many would have probably glossed over that, especially those who  –  erroneously in my view  –  believe that there are rigid trade-offs between efficiency and equity.
 

However, to fail on both counts, and to do so in such a spectacular manner, is indeed a “crisis.”
 

It raises legitimate questions about the model itself.

Mohamed El-Erian, Financial Times, January 20, 2012


Governments have been blamed for the financial and political chaos of 2011.
Public trust in government has suffered a severe breakdown across the world,
BBC 23 January 2012


Investors need to prepare for three possible outcomes to the European debt crisis,
including the worst-case scenario in which the monetary union is left in tatters,
Pimco's Mohamed El-Erian, the co-CEO of the the world's largest bond fund manager
CNBC, 29 Nov 2011

Economic theory discredited

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