Improving capitalism

“The current world situation can be characterised by a widely spread insecurity. Politicians use the developments for their own agenda. The developments can also be seen in Germany”, emphasised Dr Gregor Gysi, former group chairman of the political party “Die Linke” and president of the European Left, during his speech at Frankfurt School of Finance & Management last Wednesday. The student initiative FS Economy & Politics had organised the event. In his speech the politician focused on the question if there are alternatives to capitalism.

Rapid change can lead to serious consequences in society

According to Dr. Gregor Gysi more and more people lose orientation. In his view it is not easy to foresee the digitisation´s consequences. Because of that, there is an increase of uncertainty which helps despots to gain power. “In contrast to a democracy a despot is able to change things rapidly. However, many people forget that dictators cannot be voted out”, said Gysi.

Capitalism: Efficient economy and major threat

In the speaker´s view capitalism brings three substantial advantages. The system can create an efficient economy while being democratic. Moreover, capitalism is able to produce outstanding science and research. However, capitalism cannot secure peace, because there is a permanent struggle for resources. Also, the global arms industry has powerful supporters. Furthermore, fighting for resources increases environmental problems.

Thus, in order to improve capitalism, there is a need for change. “We need to downsize or nationalise big banks and global enterprises. Monopolies bring inequality. Also, governments cannot just privatise public service”, the speaker explained.

Furthermore, the politician explained, that there is a big need for a social market economy that secures the interests of employees and customers by law. Also, he emphasised, the German government needs to invest to stimulate domestic demand.