Growth Without Inequality: Reinventing Capitalism (Banking, Money and International Finance)

Many years on after the 2007-8 financial crisis, most developed nations still find themselves in a state of weak recovery, high debt pile-up and distributive disparity. The intriguing question that we face is whether the golden days of modern capitalism are over, or if capitalism is just undergoing another period of adjustment characteristic of its past. What is disheartening is that the twin economic goals of sustainable growth and equality, which the world has now come to recognise as of paramount importance but mutually conflicting, remain, more now than ever, illusive and unattainable. Growth Without Inequality attempts to address this issue and to provide a pragmatic solution especially for nations in the current policy gridlock. By offering a unified framework of factors that drive growth, it shows how growth also gives rise to an array of "anomalous market forms" (defined by different degrees of value and risk visibility) that subvert distributive equity between labour and capital. It debunks both the pure free market solution and the mixed economy approach on the ground that they fail to arrest the growth propelling yet subversive power inherent in the "corporate forms" under the present capitalistic regime. Having shown that effective reform can hardly take place within the system itself, this book proposes to build a separate sector (Economy II) and partition it from the existing system (Economy I). The solution is easy to implement and quick to take effect. By one single stroke, this "Non-Marxist" solution can happily achieve the ideals of both "competitive capitalism" and "egalitarian socialism." Cover 1 Half title 2 Title Page 4 Copyright Page 5 Table of Contents 6 Preface 7 Acknowledgements 17 PART I: Diagnosis 18 1. Growth and Its Drivers 20 1.1 A Critique of the Standard Growth Theory 20 1.2 Growth Driver I: Institution 24 1.3 Growth-Driver II: Scale 31 1.4 Growth-driver III: Productivity 34 1.5 Explaining Growth Phenomena 38 Notes 47 2. Growth and Its Consequences 49 2.1 Price–Value Analytics 49 2.2 Value Hijacked: Scarcity Engineering and Price Manipulation 54 2.3 Value Subverted: Financial Capitalism 59 2.4 How Growth Subverts Equality 76 Notes 89 PART II: Solution 94 3. The Vain Search for Solution 96 3.1 The Market as a Non-solution for Inequality 96 3.2 Government–market Complementarity as Non-solution for Inequality 109 Notes 116 4. The NPV Model and Economy II 117 4.1 The Paradox and Predicaments of the Capitalist System 117 4.2 NPV Model and Economy II 118 4.3 Empowering Economy II – the Idea of Voucher 122 4.4 Operational Details of Economy II – the Natural Person Company 123 4.5 Economy II in Operation – Vouchers 124 4.6 Funding 126 4.7 Possible Drawbacks and Criticisms 126 Notes 131 5. Growth Without Inequality 133 5.1 Equality 134 5.2 Growth 136 5.3 Stability 139 5.4 Individual Well-being and Social Harmony 141 Notes 144 Further Reading 146 Index 151 Content: Cover Half title Title Page Copyright Page Table of Contents Preface Acknowledgements PART I: Diagnosis 1. Growth and Its Drivers 1.1 A Critique of the Standard Growth Theory 1.2 Growth Driver I: Institution 1.3 Growth-Driver II: Scale 1.4 Growth-driver III: Productivity 1.5 Explaining Growth Phenomena Notes 2. Growth and Its Consequences 2.1 Price-Value Analytics 2.2 Value Hijacked: Scarcity Engineering and Price Manipulation 2.3 Value Subverted: Financial Capitalism 2.4 How Growth Subverts Equality Notes PART II: Solution 3. The Vain Search for Solution. 3.1 The Market as a Non-solution for Inequality3.2 Government-market Complementarity as Non-solution for Inequality Notes 4. The NPV Model and Economy II 4.1 The Paradox and Predicaments of the Capitalist System 4.2 NPV Model and Economy II 4.3 Empowering Economy II -- the Idea of Voucher 4.4 Operational Details of Economy II -- the Natural Person Company 4.5 Economy II in Operation -- Vouchers 4.6 Funding 4.7 Possible Drawbacks and Criticisms Notes 5. Growth Without Inequality 5.1 Equality 5.2 Growth 5.3 Stability 5.4 Individual Well-being and Social Harmony Notes.