Ruchir Sharma - What Went Wrong with Capitalism? | Prof G Conversations
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- เผยแพร่เมื่อ 28 มิ.ย. 2024
- Ruchir Sharma, the Chairman of Rockefeller International and Founder and Chief Investment Officer of Breakout Capital, an investment firm focused on emerging markets, joins Scott to discuss his latest book, “What Went Wrong with Capitalism.” Follow Ruchir on X, @ruchirsharma_1.
Timestamps:
00:00 In this episode
00:42 How has capitalism been ruined?
02:42 Are we over-regulating?
04:46 Does over-regulation suppress economic growth?
06:12 Why did economies slow in the 2010s and where are they today?
09:06 Are low corporate tax rates the cause of the decline in productivity?
10:24 Where should we cut government spending?
13:15 What policies or laws would you want to see implemented right away?
15:19 What is the Indian economy like and what are its future prospects?
18:14 What rules for successful nations is the UK following and breaking?
19:49 Is the US’s advantage over Australia, Canada, and the UK due to its tech sector and AI?
21:10 Compare and contrast different nations’ immigration policies. What is the ideal policy?
22:49 Have we done a better job assimilating or do we attract a different type of immigrant?
23:32 Which economies are you most bullish on?
25:52 Thoughts on China?
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Lower assessments will ensue if sellers are forced to sell, which will force property prices to drop. I now see the stock market as a means of achieving my millionaire ambition. Yes, I'm not the only one thinking this way.
The best investments historically have been U.S. stocks. Handle it like real estate; don't buy on a whim or in a panic.
Both are appealing to me. However, based on my observations, the majority of billionaires I know became wealthy through a variety of investing strategies, and each one of them had some form of advisor to assist them in making wise choices.
Yes, advisors are the best representatives for investing positions-straight up! It's how I've survived for the past five years, making about $1 million in return on my hundreds of thousands of dollars invested. In my opinion, a 40% decrease in property prices is necessary before the market returns to normal.
I'm screwed-real estate prices and interest rates have skyrocketed, while my pay has remained unchanged! Would you mind telling me who your advisor is, if I may ask? desperately need to allocate assets properly
I advise you to check up *Leah* *Foster* *Alderman* as she goes by. I'm glad I decided to let someone handle expanding my finances even though, to be honest, I almost didn't think I should.
In my humble opinion lobbying is assisting in destroying the American dream. The numbers themselves far outweigh who we have in congress. Roughly 12,000 lobbyists total are going to get their agenda across, and I would venture a guess that maybe 1/10th of those are of the common citizen’s interest
Lobbying place ''concentrated benefits & diffuse costs" at a higher level.
Overlooked: Prioritizing profit/efficiency maximization has led to the destruction of system redundancies which provide safety paths against failure and a larger number of income opportunities for citizens who face becoming an underclass without them.
Not sure I understand why an overabundance of tech sector lobbyists (which I agree are too many) is more pernicious than a overabundance of ANY sector of lobbyists. We are certainly not over-regulating business; we are under-regulating business in a meaningful manner. We have a wad of elderly, wholly ineffective legislators paired with a load of uneducated, child-like partisan politicians who are entirely unable to function as a governing body.
I like the pixelated Mona Lisa.
Not one word about raising taxes on the top 1%
That won't fix it.
If they taxes every single American for everything they have then the government will still in debt into their eyeballs.
They're indebting people that don't even exist yet with their spending
Guess for who he works.
Chairman of “Rockefeller International” a private wealth management firm for ultra-high-net-worth families. lol.
They did in a way talking about capital gains taxes.
@@lindsaykimbrough8260 lol
I think one of the key ingredients relating to the dissatisfaction of many folks in the economic system is the lack of participation in the formation of wealth. The top 1% have accumulated much of the gains. Proper progressive taxation and reinvestment in infrastructure, education and health care will change the sentiment!
He says overregulation leads to pro-incumbency and pro-big business to the detriment of the startup. That's true. But why is that happening? The reality is that the democratic systems we have constructed hold a contradiction. Government regulates business for many reasons but the most important one being to make a fair and level playing field for competition. Business relies on that and plays by the rules to succeed by giving a good or service that adds value to people's lives with a return in profit. Overtime, the businesses that are most successful start to realize that lobbying becomes a greater source of future return than anything else. Politicians goals are mainly to get elected and stay in office. Businesses lobbying government and help fund their campaigns while the politicians give them an unfair advantage in the form of new regulations. The contradiction is that the profit motive leads to distorting the level playing field. What I have just described is crony capitalism, and there is nothing in our democratic capitalist systems that can stop it. If what I am saying is at all intriguing then you all should check out Michael Munger at Duke University.
Amen!
Only way to Raise Productivity is High Interest rate and end of free money.
Sharma is on point regarding issue of Gov intervention and low productivity as key issues in AUS. Current Gov policies are steadily eroding opportunity for anyone looking to start a business or company. Min. wage is now $24.10. Largest no. of company liquidations in 10yrs, building industry collapsing while desperate need for housing, energy costs unsustainable, 30+ companies delisting from ASX and majority of jobs created this year from sectors directly off Gov subsidied sectors like aged care and health.
Australians are happy to contribute to better overall society until their standard of living is impacted, socialism works when someone else pays for it.
Why is this guy's interview just 28 mins?
Usually the interviews go on for much longer
28 mins was too long
His whole schtick could be reduced to 2.8 minutes
Churn is good. But churn won't happen if we combine bailouts with over-regulation of startups. There is little incentive for changing the status-quo in an environment of regulatory capture and incumbent-driven lobbying.
The volume of regulatory rules is less telling than what they do. Complaining about the number of regulatory rules without assessing their efficacy or span of influence is a pointless, and based on his statements, bordering on intentionally disingenuous, especially where you consider "cost of doing business: is added to to keep bad behavior from occurring. You could make an argument for simplification of a lot of regulatory measures (e.g make all fines intentionally punitive based on revenue volumes such that 'cost of doing business' becomes 'cost of losing the farm', break up 'too big to fail' institutions, and put bad actors in federal prison) and put real teeth in them, and I suspect things will clean up pretty quickly.
"Two" many incumbencies? I'm reminded of a song from my youth by a group called the Cult. It went something like "he's gone crazy trying to tame the American horse..." I loved the imagery as a teen of unbridled opportunity--as an adult that wild horse feels like trampling governments in need of taming. Here's to hoping the American horse can both retain its powerful inspiring presence (people, innovation, aspiration to serve humanity) and to do so without crushing the struggles at the genesis of invention.
The point that Ruchir makes about concentration in stock market is not unique to current market.This has always been the case.In an index of 30 stocks,it is 10 - 15 stocks which are giving 80% of gains.
It will be a very unpleasant winter for many European countries this year. Its even worse when you dont have enough saved up. At this point, the thoughts of retirement scares the hell outta me. Its been a really bad year for me and my investments. The market conditions these days are really causing me a lot of stress. I'm worried this could put a wrench in my retirement plans. Exhausting!
This strikes me as a complete non-analysis of the current state of the global economic system, I would encourage anyone who watches this podcast to read The Knowledge Economy by Dr. Roberto Unger. It offers a far more prescient analysis of malaise affecting our time and a far more convincing critique of why growth rates have dropped globally.
We shouldn’t wait for thousands to die before we regulate either. Bhopal anyone? Unregulated AI? Yeah good luck with that.
Better deficits than surpluses. A red state in the south has a 50 billion dollar surplus and declared it their own. In other words they stole 50 billion from the taxpayers and laughed all the way to the bank.
The premise that the neoliberal era has been qualified by over regulation is laughable at its face. Tepid GDP growth since the GFC (the Silent Depression) has more to do with stagnant wages, unchecked monopolies and a massive upward transfer of wealth than a lack of "productivity" of American workers, who, aided by technology, are considerably more productive than they were decades ago but don't have the wages to show for it.
India just achieve 8.2% economics growth Indi in the past have achieved 10% economic growth
We need long term yearly consistency
empire always fall sooner or later, it is a lifecycle. There was always a reason that cause it.
This does nothing for my young male anger and the disrespect for my labor is felt.
I totally agree with need to address USA debt/deficits down to a total of
"regulations tend to favor the big players", yeah wonder why! maybe we should look into that no? This guy's entire roundabout argument can be resumed to "money in politics".
The result would probably be a disappointment. I'd wager that most people vastly underestimate the amount of "common sense" regulation people actively support that ultimately serves as a barrier to newcomers in the space.
Example? Regulations around building real estate. I heard recently that depending on where you are in the country 1-200k of the cost of building a home comes from regulatory compliance and navigating the legal processes. Who wants to compete to build "affordable" houses when you know from square one that you can't even begin to build for less than 1-200k?
I like this india guy a lot, sure he is promoting his book but he the foundation is sincere.
He seems to genuinely care.
I am from India and he is one of the good economists when it comes to Indian system as well and has pointed its flaws out multiple times.
If politicians and courts could be counted on to serve the people, his capitalism would work. Since they are so easily swayed by $, it doesn't. Pretty simple really.
anyone who controls the spending? MIC consumed trillions, took talents from tech and healthcare sectors, yet the world is more unstable, and no political accountability for that. too late now to cut spending when the world is falling apart, see demographics, climate change, nuclear/global war. actually more efficacy is needed from government AND higher spending
Can you imagine the exploitative nature of our economy and society if government did not regulate the commons. The notion that regulations in general should be curtailed to enhance growth focuses too narrowly on economic growth over protecting the wellbeing of our society. I believe we need common sense regulations even if that slows growth because humans tend to do stupid shit.
The usual "socialism and government are bad; unfettered capitalism is good". Yawn!
He lost me when he said that there's not much we can do about population growth declining.
How about government incentives to have kids? Like: national healthcare, paid time off, government funded daycare.
I know Prof G dodged the issue but it's a very real issue problem that the USA usually attracts the best, brightest and most ambitious immigrants from all over the world, whereas Europe mainly attracts refugess from all the failing nations it is surrounded by.
And this is something Americans fail to understand when assessing immigration elsewhere.
pixelated mona lisa is so sick
This guy is clueless to the max about non English countries. So much covert facts
All the smart people know how to be critical of capitalism
"I saw what socialism did" - Like put me through college and enabled me to have this job...🙄
Why : government intervention
How : government intervention
Who : lawyers and lobbiests
When : government regulation
Where : government regulation
What does he have to back up any of his talking points?
I was passively listening til Ruchir mentioned Greece. My dude you have no idea what you are talking about.
The average Greek is starving while walking in 2 jobs. Most of the middle class have left the country. The rest have become bargaining chips between the government and 2 billionaires.
The whole capitalistic idea was very short sighted. China has proven how it can be easily undermined by state subsidies, they have been very successful in insourcing entire industries. Not to mention, Capitalism doesn't pay much heed to environmental destruction or basic decent human moral justifications!
This guy is full of crap. Corporate/CEO greed has ruined capitalism plain and simple. I’m sure this guy would probably be in favor of “trickle down economics” too.
He is saying that... It is going to the incumbents via stock buy backs vs. new productivity features etc.
Drop 200 billion from the military budget
This is what drives me insane about interviews: one guy chews up a clock without even a basic level of common sense. Comparing productivity growth with the health of an economy is absurd if the population is changing, human/environmental rights are being enforced, lobbyists aren't the same threat as corrupt politicians who take their bribes, and tax policy changes have given awys trillions yet big-X industry is whining about regulations costing a few hundred grand after their $2 million dollar subsidies to reward them after cornering their respective markets.
9:51 "oh, oh, what happened to capitalism, it must be productivity down", well that or we're making it harder for slave labour or prejudice wages? Socialism isn't a bad word, we don't speak in extremes in academia. Socialism just means that government is in control (not necessarily command, just controls over, same as weapons makers, drug makers, food suppliers and porn publishers are supposed to be controlled by popular opinion. Socialism doesn't mean communism, it means if you take from public resources like oil, air or damage public resources like water, right of way, or cause spread of disease, then socialists suggest the government ought to have authority of control just like a drivers ed instructor with that wheel and brake they can override in case of emergency.)
This is lunacy economics, rentseeking at its most repugnant. Bailing out FDIC is moral hazard, share buybacks after 2008 is moral hazard, forcing profit sharing pension plans or ta nation for unearned income equal to earned income, or consumption taxes on PPE taking the burden from low end income taxes of individuals and single parents. Child care and health care so people are capable of being more productive without dying early for it. There are studied and measured responses to all of this man's opinions and yet his "research suggests....".
No, it doesn't. Lol
What I didn't hear from the author: 1) how does America compare to other countries in terms of rules & regulations 2) an acknowledgement that some of the rules & regs came about because businesses took advantage of customers. Overall I felt this book was based on junk journalism, appealing more to sensationalism / sentiment surveys and relying less of data and comparisons across other countries. What does this guy want? Unfettered capitalism running roughshod over consumers so that we can go back to the days of Adam's Smith's version of mercantilism?
Once again, the problem is government.
Please remove the X (Twitter) handle. The account belongs to some other Ruchir Sharma.
He seems very confused
Thanks Scott for the remark on what kind of immigrants compared to France .. I felt like an immigrant when I studied my mba in Pennsylvania (Bethlehem).. my best teachers were American, Indian, Korean,… not sure we get these motivated people.. some of them yes.. but definitely not the same profile on average.. and that’s even before considering religion ..
Not sure why I'm seeing this guy everywhere when it sounds like he's just pitching neoliberalism. That system has been in force globally for 40+ years, only to be questioned in the last 5-10... I feel another wave of concern trolling about the debt coming. Of course it's something to be concerned about, but none of these clowns ever propose revenue, it's always spending cuts.
This guy really knows how to talk so much and still say nothing at all.
Ha ha
Aah here we go again.. you should watch Joe Rogen… 😂
"keeping alive dead wood" is nothing?
its just the "bullshit jobs" thesis again
He can say a lot but please consider that he cited the most important growth trends and statistics (or lack thereof) in the world and gave clear reasons why he thinks they are downturned: excess regulation, govt borrowing and population decline
Low quality guest. Has absolutely no actionable suggestions when asked.
What a weak interviewee
Sorry Scott, I can’t even finish this interview. Your guest insufferable lol
save 40mn of ur time, let more indian migrant in, india numba one, china falling, india+usa=win lets go fellas
he sounds like an apologist for most right wing policies. also, nobody ever talks about how crucial illegal immigration is for the economy.
This guy was not very good. 👎🏼
Capitalism is the only economic system that can produce affluence and abundance if not regulated.
Left unregulated it leads to even worse outcomes. That’s how you get “gilded” age.
Yes, affluence and abundance for the few and poverty for the many. Please have a good look at the robber baron era. Lovely unfettered capitalism without all those nasty EPA and OSHA regulations. Hell, lets go back to child labor, amirite?!
Simplistic truisms cannot be applied correctly to a complex system. Falsehoods are inevitable.
Russia has unregulated capitalism. It works great for a very few.