Economics for Business - Essay Example

This would entail more concern for the poor and redressing those imbalances set off by the market capitalism. The point in the article is about how the rise of the “social democrats” would lead to a new order in the world. This article would be of interest to anyone concerned about the rise of the sort of market capitalism or the “neo-liberal” order that prevailed over the last thirty years or so. Given the way in which leading banks around the world collapsed or had to be bailed out for fear of imploding, the article certainly is timely and relevant to our times.

Thus, the thesis of the article is about moving away from the old order and building new regulatory mechanisms in place. As Mr. Rudd puts it, “unfettered capitalism” is not only dangerous but malignant as well. I have chosen this article to review as it fits it with my thinking about the evolution of market economies and the way in which the future forms of capitalism would evolve from the debris of the current economic crisis. And given that Mr. Rudd was elected on a platform of “social change”, I am interested in pursuing this line of thinking.

Many commentators have called the excesses of Wall Street as “Casino Capitalism” where the players tend to look at investments as a sort of game that yield higher and higher rate of returns without a thought for the risks involved in such an enterprise. The term has stuck as several of the “Ponzi” schemes have shown how unscrupulous brokers and bankers around the world resorted to an economy of debt and reckless lending practices combined with high risk taking behavior. Though classical economics places a reliance on debt and risk taking to get the profits coming, there are certain norms that are prescribed along with tenets of economic theory.

What has happened over the last decade or so is that these tenets of economic theory have been ignored. One of this states that the value of an asset