Steps to Change: New Capitalism

Welcome to my rendition of Capitalism.

I’m not the first to innovate Capitalism (obviously), there have been waves of revolution in history that have forced governance to evolve. For example, the 1840s breakdown of Globalisation led to reform laws giving the working class rights that were previously unheard of. The economic failure of the British and Americans after WW1 was followed by the New Deal and the Welfare State. Keynesian economics worked for a while through the 1950’s to the 1970’s — but we were all assimilated by Hayek, Friedman and others whose work brought about the Thatcher-Reagan revolution. You could also argue that the late Major years, Blair/Brown years and Clinton/Obama years were connected periods of social democracy (Bush Jr was a typical US swing after Clintonism), but the reality was that they played in the garden of Thatcher and Reagan and ran with it — trying to jump the fence or dig their way out — but never quite made it.

One of the hallmarks of this current form of Capitalism that we tend to ignore is the contradiction between social benefits and individual losses. Just how the Government can adapt monetary policies to counter unemployment and inflation, they can also redistribute so that communities can better deal with the transformation into the next phase of Globalisation, accounting for trade, competition and further-technological advancements. This means rather than cash handouts, the Government can circulate subsidies and pass new minimum-wage laws or drive modern up-skilling practices. The best examples of this can be seen in Germany, Singapore and Switzerland, where the Government puts money towards high-quality vocational education and re-training workers and students, allowing non-academic routes to achieve a middle-class standard of living and a more balanced economy.

Nevertheless, it’s important to be clear that there is not one form of Capitalism, it’s not a singular easy-to-point model. In fact there are a variety of forms of Capitalism in play today — there is a corporatist system in Germany, a truly social democratic model in Scandinavia, and the State Capitalism of China. Now let’s be clear — the discerning thinker knows that for the US and UK to point to Germany is illogical as Germany has pursued a model linked to its history after two world wars, and focused on rebuilding and curating its society to be inclusive. Scandinavia also acts as a less fruitful proof point because of its homogeneity. And to be fair, while it might have helped with COVID19, the democratic deficit that comes with China’s model, to our freedom, human rights and long term belief in democracy should never be traded. So it would seem these homogeneous societies (the last two at least), and their unforgiving immigration stance means they are hardly comparable to the melting pot, economic powerhouse and historic diversity (good and bad) that layers the UK, the America’s and parts of Europe like a (good! If that’s possible?) calcified heart valve. We are complex, and you know what, that’s beautiful.

Let’s take my life — parents from Ghana, grew up in London, worked in the U.K., and around the world, have lived in the US, and now kind of floating — trying to learn and have an impact. We need to rewire our Capitalism to recognise the way people, organisations and capital are moving around the world, blurring cultures, insights and innovation. So while these are not proof points — what we can do is learn and pinch bits. I mean the Europeans and Americans have been pinching things from Africa, South America, Asia and other places for years — so maybe let’s stop pinching people’s bodies, ideas, and powers and pay compliments by pinching their policies.

So what would I pinch?

We need a proper Global Tax System, and could learn a thing or two from Germany. It is unfair that companies sell goods to a consumer in the UK, but realise the sale and tax liability in Luxembourg or Ireland. It cannot be acceptable that the worker in the US pays their taxes but the multinational gets to negotiate a tax bill with the Government. I will be one of the first to say the Government doesn’t have all the answers, but I will also be one of the first to say that (Good) Government is our last bastion of resistance against the ferocity of Corporate greed. If the question is who I do trust with the future of my Grandchildren or Great Grandchildren (I have none yet!) — sign me up to the Government leading that future any day of the week.

We need workers to be on Boards and to have access to the right worker rights — thanks Scandinavia. The data shows they make better long term decisions, generate better productivity, health and customer experience.

We need to stem the flow of international capital’s ability to steam roll into countries and sweep up assets, launder money, and oppress local people — thanks China. Just to be clear, I am not advocating for a China-esque state Capitalism, however, there are scenarios that I think illustrate Capitalism has gone too far. Is it right that non-domiciles can buy up large swathes of US land without being truly committed to the US/UK? As a social entrepreneur myself with interests in the UK and US, I’d be more than happy to adhere to guidelines that encourage hiring of local talent, or maintaining some level of born resident involvement in my businesses — a balanced economy.

And let’s build a stronger welfare system incentivised to help people get back to their best, and create value — thanks Europe. This is where the juxtaposition between social benefits and individual losses comes in. A stronger welfare system would ultimately lessen unemployment, reduce inequality and relative poverty, therefore increasing standards of living. The idea here is that basic human rights are not only achieved but also conscientiously fulfilled.

Oh and let’s find a way to pay our Public sector workers what they deserve and follow the breadcrumb trail to understand the true value they bring to society — thanks Singapore. Studies show public service motivation is largely absent from Western societies. Those who want to make a difference to their society as a whole have no desire to take the civil service or government aid route. We need to look to change that through creating better schemes and appealing to our youth, and quite simply paying more. By balancing the value we place on our private workers and public workers — we will build up a balanced economy.

These countries enjoy strong academic outcomes, low youth unemployment rates, and high worker productivity and standards of living — and it’s time to learn from them and build our own version in the US and UK. We have the resources, the play just needs to be made.

The real question is one of how to make it all universal or accessible. Hmmm there’s a lot to do but again, let’s hip, skip and jump across some options.

We must also consider the role of the New Economy. The constantly expanding parameters of tech and innovation should bring us higher productivity, and therefore greater wealth and standard of living for all. We have to stop (this current form of) Capitalism using technology as a fake shared-economy narrative that essentially ‘traps and tricks’ people into buying into their models for a quick buck in exchange for job quality, voice and career progression. That is my view on Prop 22 in California and its recent result — another blunt referendum instrument failing to get the dynamic and complex change that is needed to balance our economy. It is time to create more funds focused on capital flowing in the interests of more stakeholders, workers included, or we should be driving the need to create dynamic benefit locations for people working for multiple employers.

Open up Africa- it really is that simple. Trade tariffs that discourage original trade from Africa, and that perpetuates processing and value creation of Africa’s resources offshore may be officially dropped, but that’s just a formality, a process. The culture that created it needs to change — the West, in particularly the EU’s neocolonial approach to African economics has held back development for years, particularly in the agricultural sector. This needs to not only be addressed, but absolute free trade needs to be realised.

I speak of needing bold management and Gen X and Z provide the character to revolutionise our leadership culture. They know what they want, and they are not vested like the rest of us. Finding the balance between new generations such as Alexandria Ocasio-Cortez and long-standing veterans of Government is the collaborative assembly we need in order to secure the much needed future I’m describing to you. Gen X and Z are who we need to rally behind and push beyond what we imagined. I think I’m an old millennial and I’ve had the privilege of experiencing extreme poverty, and now find myself in the privileged position of turning away work, roles or things that do not align with me?

Lastly, I believe it is crucial to develop new recognisable credentials beyond top University education to help identify talent. While a fantastic innovation and stalking horse in this battle, I want us to go further than apprentices. The history runs deep. Red Brick and Ivy League schools stem back from religion, wealth and patriarchy. Many were wealthy landowners who decided to entrench their legacy by establishing whole institutions such as Leyland Stanford or Oxford University founded just before the 10th Century. Even today’s Billionaire’s can barely get a room or institute named after them, but a whole University? Forget it. However, people are learning in unique and incredible ways. People self-learn on online platforms, they teach themselves to code or do all nighters to learn how to mine crypto — it’s all proliferated. I think we now see these institutions and credential markers — my thought is how can we open access so more can get those credentials?

My thesis tag line would be that we need to move with the times; adapt our system towards the greater good via reimagining education and reform our state of nature through universal rights…. oh and did I say, we need to focus on bringing back balance to our economy, the way Luke brought balance to the Force in Star Wars.