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The Global Financial Crisis 1 min readViewed 2 times

4.6 Capitalism And Its Future


As Karl Polanyi argues, capitalism is an anomaly - for it is a system, where social relations are determined by economic relations. This is unlike in previous systems where economic interactions follow from social relations20. Capitalism suffers from bigger conceptual problems:

1. Mixing needs and their means of satisfaction.

2. Needs are only materialistic.

3. Commodities and services are not related to the structure of the society.

These assumptions have left societies and the world in disarray both physically and intellectually. The future will certainly see a correction; correction of a non-correctable system entails replacing it with an alternative system.


20 Polanyi K, 1944, The great transformation, Rinehart & Co., New York.

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Chapters (31)
  1. 11. Introduction
  2. 21.1 Anatomy Of A Crisis
  3. 31.2 Diagnosis
  4. 42. What Went Wrong?
  5. 52.1 Gamblers Folly – Let Them Fail
  6. 62.2 Liquidity Crisis – The Banks Stopped Lending
  7. 72.3 The Domino Effect
  8. 83. Government Intervention: Superheroes To The Rescue
  9. 93.1 Bailouts
  10. 104. Capitalism’s Systemic Flaws
  11. 114.1 A Monetary Time Bomb
  12. 124.1 The Absurdity Of The Business Cycle: Boom And Bust
  13. 134.2 Doomed To Live In A Crisis Ridden World
  14. 144.3 Inherent Instability
  15. 154.4 Prosperous Or Preposterous System
  16. 164.5 An Interest-free Economy
  17. 174.6 Capitalism And Its Future
  18. 185. The Islamic Perspective
  19. 195.1 The Human Crisis
  20. 205.2 Credit Or Misery Creation
  21. 215.3 Gambling And The Legal Environment
  22. 225.4 A Market Free From Manipulation
  23. 235.5 Corporate Bias
  24. 245.6 Accounting For Success And Failure
  25. 255.7 Inflation Versus Gold/silver
  26. 266. Conclusions
  27. 277. Appendix
  28. 287.1 Collateralised Debt Obligations (cdo’s)
  29. 297.2 Credit Default Swap (cds)
  30. 307.3 Currency Swaps
  31. 318. Hizb Ut-tahrir