Finance and Economy

Capitalism gives rise to an attitude that dehumanises us, because it turns us into competitive animals. We fail to realise that capitalism is an inherently exploitative system, where most of the power will always reside in the hands of the rich. But there is a way around this…

Throughout his time in the European Parliament, Philippe Lamberts has been campaigning and working towards a fairer and more human system of financial regulation for the EU. Nevertheless, it appears the financial orthodoxy is still calling the shots in Europe. With the new parliament term underway, he gives his assessment of the progress made so far, and the outlook for the future.

While providing valuable insights about the development of our economic system over time, Thomas Piketty’s work on capital suffers from a critical flaw: like so many economic frameworks, it ignores the limits of the finite resources of our planet – the fact that our ecological capital is rapidly running out. A new unit of measurement which takes this into account is urgently needed.

At first glance, sharing initiatives would appear to be important elements for building an economy based on solidarity and sustainability. Yet, these different models of sharing do not generate the same societal and financial return. Some of them, such as Uber, are forms of ‘sharewashing’. In fact, Uber’s business model, financed by Goldman Sachs, is at the polar opposite of sharing.

Negotiations over the Comprehensive Economic and Trade Agreement (CETA) and the Transatlantic Trade and Investment Partnership (TTIP) are being conducted as if they were private business deals. Trade policies, however, affect all of us and have implications for the global economy.

Considering the current attitude of the Turkish government which regards regulations as hurdles reducing economic growth, the recent Soma mining accident should not have come as a surprise. From both economic and ecological points of view, the Turkish economic growth trajectory is not sustainable and should be changed.

Beginning in the fall of 2013, three manifestos published by German and French intellectuals revived the idea of establishing a “Political Community for the Euro” to give the single currency a true system of democratic governance.

Despite some positive signs, the European economy remains extraordinarily weak. To escape deflation and solve problems like unemployment, what is needed is a whole new approach to getting money into the economy.

The 2007 financial crisis evidenced the weaknesses of the Eurozone. Since then, European policymakers have tried to save the euro and the European financial market. As consequence of the economic and political instability of the last years the European Central Bank has de facto gained more power vis-à-vis the other European Institutions and political actors. Today the ECB is fundamental for determining Member States’ economic policies in all areas, not only monetary policy.

It is no secret that the lobbying might of financial institutions has shaped regulatory rules at national, European and global level. But did the disaster of the 2007 financial crisis change this? The honest answer is that the old institutions are still up to their old tricks, and a change in how we make policy is needed if we are to avoid a repeat of the crisis.