We use cookies to make sure our website better meets your expectations.
You can adjust your web browser's settings to stop accepting cookies. For further information, read our cookie policy.
IN Warsaw
Exchange Rates
Warsaw Stock Exchange - Indices
The Warsaw Voice » Special Sections » January 26, 2012
Special Section: Education
You have to be logged in to use the ReadSpeaker utility and listen to a text. It's free-of-charge. Just log in to the site or register if you are not registered user yet.
Capitalism in Crisis
January 26, 2012   
Article's tools:

Prof. Witold Or³owski, Director of the Warsaw University of Technology Business School, Member of the Prime Minister's Economic Council:

There is no question that the capitalist system is going through a crisis today. Young people are out in the streets of cities in Europe and America protesting against capitalism, seeing it as a system of fraud and exploitation. Of course they have some valid arguments you need to understand. On the one hand, they can see lost savings, lost jobs, disappearing hopes for a better life; on the other, they see bankers receiving huge paychecks. What they don’t see is that there is simply no alternative to capitalism and the free market, and any attempts to “replace” it with anything else end in complete disaster. The market economy is not anybody’s choice; it is a natural manifestation of people’s business activity, enabling them to express their entrepreneurship and innovation. It has secured prosperity for many countries, it brought prosperity to the generation of the young demonstrators’ parents. If it is improved, it will bring prosperity to them as well.

The only question is what that improvement will look like. The market works efficiently when it is transparent, well regulated, giving everyone equal opportunities, the same rights. The murkier the water, the more monopoly there is and the more unequal people’s access to information, the greater the risk that the minority will abuse its position at the majority’s cost. It’s the same with economic freedom, which is considered to be sacred and treated as a right, but only as long as it isn’t abused to the detriment of others. Undoubtedly fixing the mechanisms by which the market economy operates requires thinking about the role of government in the economy (while keeping in mind that state intervention is usually costly and far from optimal, and that it acts as a brake on development when used excessively). It is also essential that all market players have more information about developmental opportunities and threats. At our business school we teach managers that a private company has to see the meaning of its existence in more than just profit, especially short-term profit. Of course without them the company will go bankrupt. But making any kind of decision, managers also have to think about the risk they’re taking, about the company’s future, about responsibility toward customers, employees, and society.
Latest articles in Special Sections
Latest news in Special Sections
Mercure - The 6 Friends Theory - Casting call
© The Warsaw Voice 2010-2018
E-mail Marketing Powered by SARE