The wrong form of capitalism

We have the wrong form of capitalism. We have an overly financialized financial sector. The financial sector is mainly financing itself. 80% of the UKs finance goes back into finance, insurance and real estate. It doesn’t reach the real economy. The business sector is highly extractional. An increasing amount is being extracted out in the form of share buy-back, dividend pay off and not getting back into long term production systems, and that’s a huge problem. When people are blaming robots for taking our jobs, they are completely wrong. Robots and mechanization has always been labour-displacing in the last 200 years of capitalism. What’s new, is that the profits being generated aren’t getting reinvested back in, they are being financialized.

Mariana Mazzucato, forfatter av «A Moonshot Guide to Changing Captialism».