Economic Power of Individuals in Redesigning Capitalism

Let’s talk about the ’08 crisis.

Some of us have studied it deeply and others have heard about it.

However, we all share one thing; we all felt the effects of it.

Personally, I remember my mother’s friends and relatives losing jobs due to the crisis. My family had to cut spending as my parents were pessimistic about the future. Yet, Malaysia is considered one of the countries that was not significantly affected by the ’08 crisis. Having grown up in an upper-middle income family and in Malaysia, if my family felt the effects of the ’08 crisis, I can only imagine that family households with lower income, or are from countries with more lax-ed capital markets experiencing harder times.

Source : Bloomberg. Note that the top 10% not only recovered faster post 2008, but also owns more wealth than the bottom 50%.

I’d imagine that if everyone around me were buying houses on cheap credit — it’d look stupid for me to not jump on the wave. I’d be, at the very least, tempted to get cheap mortgages as well. This impulse, I would propose, is not solely my responsibility. We are innately struggling with with self-control and naturally look to other people for signals on how to behave. It’s built into our biology.

We need to redesign our capitalistic system — by consuming and investing in such a way where businesses are forced to think beyond the bottom line ($).

Cheeky Psychology and Philosophy graduate who spends too much time on ethical capitalism. Auditor by profession, buddhist in spirit, child at heart.

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