Problems affecting the capitalist system and future threats to its stability

Abstract

The author argues that the economic condition of our societies has to
be viewed over a very long historical scale. The assumption made by Francis
Fukuyama that history had somehow come to an end with the collapse of
the former Soviet empire has proved to be an illusion. Fukuyama was there
implying that the system of neoliberal economics had proved itself to be
the key to human happiness and welfare, and that once in place, nothing
could equal it. But after a quarter of a century, the doctrines of free market
economics are coming under increasing criticism. In many countries in which
the principles have been applied, not only the traditional working classes are
feeling the pain as unemployment has risen, and incomes have remained
static even for those in work. The middle classes are also complaining about
reduced expectations of prosperity, in the sense of static or even falling
incomes. It is obvious that younger generations are entering the workplace
with heavy debts from the cost of university education, and rises in the
property market are putting the ambition of home ownership beyond their
reach. But all this has to be considered in the hard light of history. Why
should capitalism, which has hardly existed for five centuries, be considered
the default system for all future time, when the trail of collapsed civilisations
goes back to the dawn of human existence on earth? But the wrangles of
economists and politicians may be set at naught by forces that may be entirely
outside their control. Climate change may cause enormous damage even in
the present century. Linked with that is the question of mass migration, the
consequences of which are now plain to see. And scientists may experiment
with artificial intelligence at their peril. Once machines acquire the ability
to modify themselves, all may be over for capitalism – and the human race.