Is capitalism actually broken?
Let’s Begin…
People have become increasingly worried that the threats we face today, like climate change and rising inequality, can’t be solved by a capitalist economic system. So, is that true? And if it is, can we fix capitalism or do we need to tear the system down and build a new one from scratch? Explore the different types of capitalism and the role it plays in our society.
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Additional Resources for you to Explore
So what would it actually look like to toggle the dials of capitalism to create a system that works for humans while also protecting the planet?
According to World Economic Forum founder Klaus Schwab, free-market fundamentalism has eroded worker rights and economic security. Schwab proposes Stakeholder Capitalism that aims to rethink free markets, fiscal austerity, and financial deregulation in order to create growth while improving the planet.
Regenerative Capitalism
Some thinkers and economists are starting to imagine an economic system beyond net-zero, towards one that has a net-positive impact on the planet. Sound up your ally? Check out this article on regenerative` capitalism. You'll learn a bit about why and how companies and governments can combat the climate crisis. The author digs into some examples, such as urban development and architecture planning.
Inflation
Curious about how inflation factors into all of this? Chief economist, Paul Donovan, traces some of the recent histories of inflation, and the causes of the current global surge in prices and digs into whether or not this is a blip or here to stay, and what countries might do about it.
Global Risks Report
A divergent economic recovery from the crisis created by the pandemic risks deepening global divisions at a time when societies and the international community urgently need to collaborate to check COVID-19, heal its scars, and address compounding global risks.
To learn more about these risks, and possible strategies for solving them, check out World Economic Forum's Global Risks Report 2022.
Watch the video and finish the Think section to complete the lesson.
About Economics Explained
Economics has had a huge impact on the world we live in—and understanding the key factors at play in these massive, interconnected systems can give us insight into how to make them better, stabler, and more equitable. Dig into these quick and compelling explainers from TED-Ed and World Economic Forum for a taste of economics in action.
Meet The Creators
- Video created by TED-Ed
- Lesson Plan created by TED Ed
