Decent Capitalism : A Blueprint for Reforming Our Economies

Contents 6 Figures 8 Preface 10 Introduction 14 Part I: The roots of crisis capitalism 22 1. The rise of market liberalism 24 The end of Bretton Woods and its consequences 27 Weak left and strong right 37 2. Unleashing financial markets 40 Breaking points in finance capitalism 46 Shareholder capitalism’s flawed logic 52 The illusion of rationality 54 3. Global imbalances fuel global instability 62 International capital flows as source of instability 65 The United States as the battered hegemonic power 70 Chinese mercantilism 75 Destabilising imbalances in the European Monetary Union 77 4. Labour in the wakeof markets 82 Labour in the face of paradigms 82 Erosion of labour market institutions 90 Increasing inequality 93 The situation in the United States, Germany and China 95 5. The next stage of the crisis 100 From private debt to sovereign debt 100 How we moved away from the abyss 102 Who rescues the rescuers? 107 The danger of a long period of low growth 108 Part II: The path to decent capitalism 112 6. Main features of a new economic model 114 Focus on demand and green growth 114 A financial system for growth and innovation 117 More equitable income distribution 120 Robust financing of state budgets 123 Levels of regulation 124 Markets as part and parcel of freedom 125 7. Resurrecting the public sector 127 Governments’ strategic spending 128 Sources of solid government revenues 132 More than just ‘automatic stabilisers’ 140 Targeted measures beyond ‘automatic stabilisation’ 145 8. Revaluing Labour and Wages 153 Macroeconomic needs for wage development 154 Strengthening of wage bargaining and minimum wages 155 Case Studies: the United States, Europe and China 158 9. Global finances need global management 161 Restructuring of the financial system 161 Reform of the global monetary and financial system 175 Reform of corporate governance 187 10. A new growth paradigm 191 Why more GDP is still a worthwhile goal 191 Reconciling economic growth and ecological sustainability 195 A ‘Green New Deal’ 201 What we can produce in the future 205 More leisure time 207 Conclusion: A new tale to tell 209 Notes 216 Bibliography 221 Index 228 Pt. I: The Roots Of Crisis Capitalism -- 1. The Rise Of Market Liberalism -- The End Of Bretton Woods And Its Consequences -- Weak Left And Strong Right -- 2. Unleashing Financial Markets -- Breaking Points In Finance Capitalism -- Shareholder Capitalism's Flawed Logic -- The Illusion Of Rationality -- 3. Global Imbalances Fuel Global Instability -- International Capital Flows As Source Of Instability -- The United States As The Battered Hegemonic Power -- Chinese Mercantilism -- Destabilising Imbalances In The European Monetary Union -- 4. Labour In The Wake Of Markets -- Labour In The Face Of Paradigms -- Erosion Of Labour Market Institutions -- Increasing Inequality -- The Situation In The United States, Germany And China -- 5. The Next Stage Of The Crisis -- From Private Debt To Sovereign Debt -- How We Moved Away From The Abyss -- Who Rescues The Rescuers? -- The Danger Of A Long Period Of Low Growth. Pt. Ii: The Path To Decent Capitalism -- 6. Main Features Of A New Economic Model -- Focus On Demand And Green Growth -- A Financial System For Growth And Innovation -- More Equitable Income Distribution -- Robust Financing Of State Budgets -- Levels Of Regulation -- Markets As Part And Parcel Of Freedom -- 7. Resurrecting The Public Sector -- Governments' Strategic Spending -- Sources Of Solid Government Revenues -- More Than Just 'automatic Stabilisers' -- Targeted Measures Beyond 'automatic Stabilisation' -- 8. Revaluing Labor And Wages -- Macroeconomic Needs For Wage Development -- Strengthening Of Wage Bargaining And Minimum Wages -- Case Studies: The United States, Europe And China -- 9. Global Finances Need Global Management -- Restructuring Of The Financial System -- Reform Of The Global Monetary And Financial System -- Reform Of Corporate Governance -- 10. A New Growth Paradigm -- Why More Gdp Is Still A Worthwhile Goal -- Reconciling Economic Growth And Ecological Sustainability -- A 'green New Deal' -- What We Can Produce In The Future -- More Leisure Time -- Conclusion: A New Tale To Tell. Sebastian Dullien, Hansjörg Herr, And Christian Kellermann. Includes Bibliographical References (p. 208-214) And Index. Cover -- Title Page -- Copyright -- Contents -- List of figures -- Preface -- Introduction -- Part I: The roots of crisis capitalism -- 1. The rise of market liberalism -- The end of Bretton Woods and its consequences -- Weak left and strong right -- 2. Unleashing financial markets -- Breaking points in finance capitalism -- Shareholder capitalism's flawed logic -- The illusion of rationality -- 3. Global imbalances fuel global instability -- International capital flows as source of instability -- The United States as the battered hegemonic power -- Chinese mercantilism -- Destabilising imbalances in the European Monetary Union -- 4. Labour in the wake of markets -- Labour in the face of paradigms -- Erosion of labour market institutions -- Increasing inequality -- The situation in the United States, Germany and China -- 5. The next stage of the crisis -- From private debt to sovereign debt -- How we moved away from the abyss -- Who rescues the rescuers? -- The danger of a long period of low growth -- Part II: The path to decent capitalism -- 6. Main features of a new economic model -- Focus on demand and green growth -- A financial system for growth and innovation -- More equitable income distribution -- Robust financing of state budgets -- Levels of regulation -- Markets as part and parcel of freedom -- 7. Resurrecting the public sector -- Governments' strategic spending -- Sources of solid government revenu -- More than just 'automatic stabilisers' -- Targeted measures beyond 'automatic stabilisation' -- 8. Revaluing labour and wages -- Macroeconomic needs for wage development -- Strengthening of wage bargaining and minimum wages -- Case studies: the United States, Europe and China -- 9. Global finances need global management -- Restructuring of the financial system -- Reform of the global monetary and financial system The recent crisis, created by finance capitalism, has brought us to the economic abyss. The excessive freedom of international markets has rapidly transformed into international panic, with states struggling to rescue and bail out a globalised financial sector. Reform is promised by our leaders, but in governments dominated by financial interests there is little hope of meaningful change.

Decent Capitalism argues for a response that addresses capitalism’s systemic tendency towards crisis, a tendency which is completely absent from the mainstream debate. The authors develop a concept of a moderated capitalism that keeps its core strengths intact while reducing its inherent destructive political force in our societies. This book argues that reforming the capitalist system will have to be far more radical than the current political discourse suggests.

Decent Capitalism is a concept and a slogan that will inspire political activists, trade unionists and policy makers to get behind a package of reforms that finally allows the majority to master capitalism. The Recent Crisis, Created By Finance Capitalism, Has Brought Us To The Economic Abyss. The Excessive Freedom Of International Markets Has Rapidly Transformed Into International Panic, With States Struggling To Rescue And Bail Out A Globalized Financial Sector. Reform Is Promised By Our Leaders, But In Governments Dominated By Financial Interests There Is Little Hope Of Meaningful Change. Decent Capitalism Argues For A Response That Addresses Capitalism’s Systemic Tendency Towards Crisis, A Tendency Which Is Completely Absent From The Mainstream Debate. The Authors Develop A Concept Of A Moderated Capitalism That Keeps Its Core Strengths Intact While Reducing Its Inherent Destructive Political Force In Our Societies. This Book Argues That Reforming The Capitalist System Will Have To Be Far More Radical Than The Current Political Discourse Suggests. Decent Capitalism Is A Concept And A Slogan That Will Inspire Political Activists, Trade Unionists And Policy Makers To Get Behind A Package Of Reforms That Finally Allows The Majority To Master Capitalism.