The US is already experiencing record unemployment, and stock markets are crashing all over the world. The economic impact of coronavirus is already huge. Does this mean the end of capitalism? Or are we reading too much into this economic shock? Previous economic crashes, such as 2008, made no change at all to the global capitalist economy, so why would coronavirus?
Yes, as international connectivity is being destroyed
Planes, travel, ships - as the hallmarks of global trade go down, where does that leave us?
Easy international travel is key to the free market
Connectivity is an essential part of a global trade, which in turn lead to prosperity. With the fall of the airline and other mobile industries, economies will inevitably turn inwards and move towards protectionist models.Explore
Global supply chains are being destroyed
Big industries rarely exist within one territory. Large scale services and manufacturing companies depend upon global supply chains for commodities. These will fall apart as transnational links erode.Explore
Global supply chains are built on inequality
Global supply chains are international because companies choose to host each constituent part where it is geographically cheapest. This practice deepens the inequality, upon which capitalism depends.Explore
Yes, without spending, capitalism will collapse
Capitalism relies on the exchange of goods. When you can't exchange goods, the system collapses.
Capitalism depends on 'private property'
How can people own property, if there are no goods on sale, and no money coming in?Explore
Capitalism requires the 'voluntary exchange of goods'
If there are no goods, there can simply be no exchange. Even when goods are available, people are too afraid of the coronavirus to spend disposable income on non-essentials.Explore
Capitalism is a 'system of competition'
Without vendors or consumer purchasing power, there can be no competition.Explore
Yes, because it is a shared global experience
Historically, global events where life and death are in the balance, have led to economic overhaul.
Shared experience ignites social change
As the world wars have shown, social change is much more likely when a community has experienced the same trauma.Explore
No, capitalism is too ingrained in the way we live
Capitalism is so intrinsic to the fabric of (nearly) every nation on Earth, it will take more than a pandemic to shake it off.
Capitalism is necessary for stability
A country's economic institutions are a key indicator of its social and political instability. As society readjusts and seeks normalcy after the pandemic, overhauling these would only serve as another source of uncertainty.Explore
This page was last edited on Thursday, 26 Mar 2020 at 12:52 UTC