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  • Photo du rédacteurRémi RICHER

Why do we need a new economic paradigm?

Capitalism as it currently exists leads us to an impasse. Here is why.

Capitalism is the economic paradigm that dominates the World today, after having defeated all other attempts to establish another economic model. Communism was thus defeated, mainly due to the financial bankruptcy of the Soviet Union as a result of an unlimited arms race and the failure of centralized planning of production and consumption at the level of an entire state.

However, this does not mean that Capitalism is the only possible economic paradigm, nor does it mean that it is always suitable for today's world.

The Theory of History, proposed by the Crystal Religion, shows why Capitalism has been an effective, efficient and useful paradigm during a certain period of history. However, today we are living in a New Age where living conditions have changed and Capitalism is becoming more and more inadequate.

In particular, we live in a World where technological progress allows companies to produce more with fewer workers. Initially this concerned mainly unskilled workers in industry, where elementary tasks performed by specialized workers were increasingly performed by machines, with one machine being able to replace several dozen workers. Then it gradually concerned more and more the middle classes, with the ever more rapid development of increasingly sophisticated software, allowing an employee to perform on his own the tasks that were previously performed by several assistants and administrative employees. The same is true at the product design level, where engineers can now do without the assistance of many technicians thanks to CAD software.

In addition, companies, at least the larger ones, are now able to choose their location with great freedom. Here too, thanks to information and communication technologies, but also thanks to highly developed transportation infrastructures, a company can very well locate a site anywhere in the World, and thus bring into play the competition between States to negotiate a privileged tax rate, but also bring into play the competition between workers by comparing the cost of labor practiced in certain countries with the cost of labor (necessarily lower) practiced in other countries.

This new technological environment, which did not exist before, makes Capitalism inadequate for a healthy and sustainable economy, since this paradigm leads inexorably to the scarcity of employment and thus to the inevitable increase in mass and structural unemployment, as well as to the slow but certain decrease in corporate taxation. For the States, this implies a continuous increase in social spending to deal with the problem of unemployment, but also a continuous increase in infrastructure spending to be able to attract companies to its territory, as well as a continuous increase in income and consumption taxes to compensate for the loss of yield from corporate taxation.

It is easy to understand that such a situation cannot last forever and that a structural solution must be found to a structural problem.

To learn more about the economic paradigm that I propose, please read my book :

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