PoliticsJOE Podcast Another round: Ruchir Sharma: Why capitalism doesn't work
Jul 5, 2025
Ruchir Sharma, a global investor and author known for his insights into economics, shares his critique of modern capitalism in this engaging discussion. He argues that capitalism has deviated from its intended purpose, emphasizing the negative impact of deregulation and corporate bailouts on small businesses and workers. Sharma highlights the monopolistic tendencies of large corporations and explores how younger generations are turning towards socialism. He also delves into the need for accountability in capitalism and the importance of reevaluating investment strategies for sustainable growth.
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Nuanced View on Deregulation
- Ruchir Sharma supports deregulation but favors antitrust against huge companies.
- He criticizes central banks' easy money policies for worsening inequality by benefiting financial elites.
Bailouts Harm True Capitalism
- Bailouts weaken capitalism by propping up failing companies, creating "zombie companies."
- Such bailouts reduce competition and hurt innovation by keeping dead companies alive.
Government's Role Hurts Productivity
- Government intervention has led to declining productivity growth and economic stagnation.
- Too much regulation and spending distort capitalism and reduce overall economic growth.
