Good morning, folks. How have you been? Are you having fun enough in the middle of your summer holiday? Well, I am reading books a lot these days and it is not a lie! I read an impressive book yesterday, and I really want to share it with you guys.
The name of the book is Capitalism 4.0. Have you ever heard of it? It was written by Anatole Kaletsky, who is sometimes called Steven Hawking in Economics. WOW, Steven Hawking in Economics? Aren’t you dying to know what his theory is about?
Well, I think you already know what capitalism means in general. It is an economic system based on a private ownership of means of production and creation of goods for profit. However, as time goes by, the concept has been changed. Kaletsky explains this change of capitalism along the time period, and classifies each time period from Capitalism 1.0 to Capitalism 4.0.
Capitalism 1.0 is the period until the end of the First World War. Till then, the system kept economics and government separate. After that period, John Maynard Keynes introduced so-called Capitalism 2.0 which allowed government to handle economic problems. It was believed that the government was effective to help economic recovery. Then, what would be the next? Of course, now you can answer! Yes, the next is Capitalism 3.0 which is very much dependent on market forces and monetarism. However, Capitalism 3.0 seems not valid any more, as the global economic recession needs a new system. Right, as you may guess, Anatole Kaletsky introduces Capitalism 4.0.
Unlike previous ones, Capitalism 4.0 admits that both market and government can be wrong. So it underlines the cooperation between the two. Business’s contribution to the society is also given emphasis, focusing on wealth-sharing and helping the economically excluded people. Isn’t this new idea nice? In fact, many industries have already joined this movement. Of course, Korean conglomerates are not the exception. They are trying to help people by donating money, building houses for the poor, and supporting scholarship. If this trend goes on, the society will ease the tension between people and share a good thing.
Now, Economics has opened its new door! Shall we enter the room and learn more about this innovative concept of capitalism? You will never regret it! Go to your nearest bookshop and grab this book for your nice holiday!