Question

What common ground does the capitalism Marx vehemently critiques share with the Age of the Second Great Transformation, and what is the most important difference, and why?

Answer 1

Both the United States and the EU have succeeded in stabilizing their economies after the crash of 2008. However, there is a return of

i) speculation and bubbles,

ii) diverging economic development in the Euro Zone,

iii) high levels of public debt,

iv) economic stagnation,

v) the threat of deflation,

vi) a sharp increase in unemployment, and

vii) social misery in many countries are among the lasting concerns in the aftermath of the crisis.

Other challenges globalized capitalism is currently facing:

i) Climate change and the need of a wide range of restructuring and reforms in the energy system,

ii) the impact of the next generation of digital technologies on industries, services, and labor markets,

iii) demographic changes and (forced) migrations,

iv) imperialist rivalry,

v) failing states,

vi) uneven developments and

vii) increasing inequality, have led to an ongoing debate concerning the multiple crisis of capitalism.

Whether globalization improves or undermines human rights is a matter that can be observed only in the long term. Globalization is the second "great transformation" spreading capitalism over the entire world. Many of its short-term effects will be negative.

Nevertheless, long-term effects may well be positive, as it impels social changes that will result in greater moves to democracy, economic redistribution, the rule of law, and promotion of civil and political rights.

Capitalism is a necessary, though hardly sufficient condition for democracy: democracy is the best political system to protect human rights.