There is an ongoing phenomenon that according to some economic experts has already brought capitalism to breaking point. In other words: we are in full implosion, only that we don't perceive it well from the inside.
The phenomenon is called “greedflation”. What does it mean? Simply put: the world is becoming more and more expensive, and salaries are not keeping pace with rising prices.
Auf wiedersehen, Capitalism
To ring the death knell is Albert Edwards, global strategist of an economic giant, the historic bank Société Générale. And he even does it from the pages of the Financial Times. The killer of capitalism, “greedflation”, is a germ that was born with it: the unbridled greed of companies that take advantage of crises such as the pandemic and the war in Ukraine to inflate their profits.
Edwards has seen unprecedented levels of “greedflation” over the last 3 years: large companies have continued to record high profits despite economic and geopolitical difficulties. In the case of Big Tech, full firing.
A key example? United States (home of greedflation): eggs, a staple product for families. Its price has skyrocketed due to general price increases and bird flu. Nonetheless, the largest American egg producer (Cal-Maine Foods) saw its prices rise by 718%: if this isn't greed, if this isn't speculation, nothing will be.
social breakdown
No crash is silent. The death of capitalism will produce profound and very painful changes in the social and civil fabric of all the most exposed countries.
According to Edwards, inflation and greedflation will not only make life difficult for consumers, but will fuel social tensions in an already difficult global context. Corporate greed is the straw that breaks the camel's back and causes the end of capitalism as we know it.
What's next?
it will be important, if it is death, record the “cause” of this death. Capitalism is absolutely incapable of maintaining a balance between corporate profits and the well-being of workers and consumers.
And we will have to start, start from here, look for economic models that guarantee a fair distribution of wealth and greater attention to the needs of the community. The challenge will be the same as always: finding a way to reconcile the competitive aspect of human beings with a more sustainable and supportive vision, and avoid worse trouble.
To build a world in which the greatest crime is greed.
