The end of capitalism? sold out

Capitalism is an economic system in wich resources are most often lacking where they are required for either production or consumption. Resources therefore need to be borrowed and the loan rewarded through the payment of interest. The mechanism of interest makes capital “grow” which leads to an inescapable concentration of wealth, regularly bringing the system to a halt. Capitalism has so far survived such wealth concentration crises, but according to dr. Paul Jorion (Le Monde-Économie) the current crisis of capitalism may be one too many. Capitalism does not live in isolation: it is combined within our current economic and political system with a market economy inside a framework of liberalism. Would it be possible that the first dies, while the other two survive?

Paul Jorion is a doctor in Social Sciences at the Free University Brussels. He holds MAs in sociology and social anthropology. Paul Jorion worked in the American financial world as a pricing specialist from 1998 to 2007. In a book published in 2007, La crise du capitalisme américain (La Découverte 2007; Le Croquant 2009), Paul Jorion predicted in a detailed account the looming subprime crisis.