In a recent thought-provoking speech, former US President Barack Obama offered a compelling perspective on reframing the economic debate.
Obama delved into economic history, acknowledging capitalism as the unparalleled generator of wealth and innovation. While recognising its historical successes, he pointed out the shortcomings, emphasising that wealth generation doesn’t automatically equate to a just society. He also reminded us of capitalism’s historical compatibility with slavery, exploitation, and environmental degradation.
The former president acknowledged the role of reformers, organizers, and visionaries in tempering capitalism’s excesses, particularly in the aftermath of the Great Depression and World War II. He underscored the importance of democratic governments in moderating capitalism, highlighting investments in education, social safety nets (of which we should be very proud of here in Europe, and continue maintaining), and regulations to maintain economic balance.
Obama astutely analyzed the unraveling of the post-Cold War consensus, attributing it to globalization, automation, and the internet. Obama also noted how China and Russia demonstrated that capitalism can thrive under authoritarian regimes as well. He skillfully connected the 2008 financial crisis and the more recent pandemic to the vulnerabilities of a globally connected world, showcasing the interdependence of economies.
Addressing the concerns of the younger generation, Obama recognized the growing doubts about achieving or surpassing previous living standards. He engaged with the argument that capitalism’s emphasis on growth and consumption, particularly in the face of climate change, might be problematic. Yet, he balanced this by asserting the continued importance of growth and productivity, to uplift billions more out of poverty, urging progressives not to ignore these fundamental economic principles.
Obama called for a collective effort to align economic policies with our deepest values, echoing the sentiment that economic choices profoundly impact the fabric of our lives. He challenges all of us, who are interested in the commons, to be the new heroes who strengthen the bonds of trust and shape an economic and democratic system that aligns with our shared values and principles.
Watch the speech: https://www.youtube.com/watch?app=desktop&v=gbog2qF5x-A
Watch my selected 10 min highlights on Instagram: https://www.instagram.com/p/Cz_DioxI62W/
Christos Floros 