Kevin Dowd: A tale of three capitalisms

Professor Kevin Dowd has penned an excellent article for the Institute of Economic Affairs.

Here’s a sample quote:

Then there is the third and least desirable but most modern form of capitalism: crony capitalism. Management is now largely out of control and its remuneration skyrockets. This is especially so in the so-called financial “services” sector. This sector encapsulates the excesses of “capitalism” at its worst: stratospheric remuneration for practitioners, a disregard for both shareholders and customers, and an obsession on short run “grab and run” profits with no concern about the longer run. It is also characterised by massive risk-taking with practitioners safe in the knowledge that the taxpayer will bail them out if they get into difficulties: profits are privatised, but losses are socialised, i.e, the social contract is “heads I win, tails you lose”.

Personally though, I’d just read the whole thing.