Klaus Schwab, the executive chairman of the World Economic Forum, writes that Capitalism needs a Grand Reset. The coronavirus has made the need for such a reset painfully obvious:
There are many reasons to pursue a Great Reset, but the most urgent is COVID-19. Having already led to hundreds of thousands of deaths, the pandemic represents one of the worst public-health crises in recent history. And with casualties still mounting in many parts of the world, it is far from over.
There are at least three big tasks that much be accomplished:
The first would steer the market toward fairer outcomes. To this end, governments should improve co-ordination (for example, in tax, regulatory and fiscal policy), upgrade trade arrangements and create the conditions for a “stakeholder economy.” At a time of diminishing tax bases and soaring public debt, governments have a powerful incentive to pursue such action.
Moreover, governments should implement long-overdue reforms that promote more equitable outcomes. Depending on the country, these may include changes to wealth taxes, the withdrawal of fossil-fuel subsidies and new rules governing intellectual property, trade and competition.
The second component of a Great Reset agenda would ensure that investments advance shared goals, such as equality and sustainability. Here, the large-scale spending programs that many governments are implementing represent a major opportunity for progress. The European Commission, for one, has unveiled plans for a €750-billion (C$1.14-trillion) recovery fund. The U.S., China and Japan also have ambitious economic-stimulus plans.
Rather than using these funds, as well as investments from private entities and pension funds, to fill cracks in the old system, we should use them to create a new one that is more resilient, equitable and sustainable in the long run. This means, for example, building “green” urban infrastructure and creating incentives for industries to improve their track record on environmental, social and governance (ESG) metrics.
The third and final priority of a Great Reset agenda is to harness the innovations of the Fourth Industrial Revolution to support the public good, especially by addressing health and social challenges. During the COVID-19 crisis, companies, universities and others have joined forces to develop diagnostics, therapeutics and possible vaccines; establish testing centres; create mechanisms for tracing infections; and deliver telemedicine. Imagine what could be possible if similar concerted efforts were made in every sector.
We don't lack for solutions. What we lack is political will.
Image: twitter
8 comments:
There's just one problem with Schwab's proposal, and it's the one Frederick Douglass pointed out over a century ago: "Power concedes nothing without a demand. It never did and it never will. Find out just what any people will quietly submit to and you have found out the exact measure of injustice and wrong which will be imposed upon them, and these will continue till they are resisted with either words or blows, or with both."
Right now, we have a fewer than 100 people controlling as much wealth as half the population. That money translates into enormous political power. So much so that the conflicting desires of the majority are not considered by politicians at all. It will take a lot of words and blows to change things.
Cap
I agree, Cap. It's all a matter of what people will put up with. The present moment is an opportunity. People around the world are out in the streets. If that momentum can be maintained, we may see significant change. Or we could slide back into the Slough of Despair.
The great re-set could include a guaranteed income, a flat tax of 15% for everyone working (especially tycoon),If people lose on their stock portfolios (retirement savings)during a crisis then so should bank shareholders.Less money for police forces and military spending would be a good consideration. I guess generally speaking more of a sharing in our common wealth and less of this idea that we have to compete in a world market. Maybe we should all be benefiting from all the wealth around us and working together for the good of all our citizens.
We used to hear the word "commonweal," zoombats. That word seems to have disappeared from our vocabulary.
I think we'll just reach into our moneybags and through some bubble at a little more than half of them. Just make sure they know that the ones we didn't pick, and especially the ones who were stupid enough to stand on principle, are having an even tougher go of it than they were before they dared to stand up. We won't even have to hang the ringleaders. That's old stuff.
Experience teaches us that it's foolish to hope, John. But sometimes hope is all we have.
Contrary to zoombats perspective, a flat tax is only beneficial to society if you eliminate all of the exemptions. At the present time, these exemptions permit those at the top of the food chain to avoid paying any taxes at all. Although not completely relevant from a Canadian application, Jeff Bezos and his Amazon operations pay no taxes and in the process, with their cannibalistic activities, they have destroyed many small business enterprises (much like Walmart). In Canada, Irving should not be able to avoid their obligations by offshoring their wealth. RG
Point well taken, RG. The experience of many towns -- whose Main Streets have died after big box stores moved into the far end of town -- should remind us that we need to carefully plan our brave new economic world.
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