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
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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