What counts as Capitalism in 2012?

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It is not surprising that the new capitalist countries of the developing world are catching up fast. Even against a background of a depressed global economy are we about to witness a “triumph of capitalism”? The real capitalists of the developing world grow to surpass the socialised economies of the waning first world.

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Can an economy that spends more on the individual than they earn, which takes almost all GDP for its purposes, really be considered a capitalist system at all?

Until something is left for the private sector to reinvest there will be no meaningful recovery in the west.

If austerity means shrinkage of the public sector to a sustainable balance with the wealth creating private sector then there is hope. But, if austerity means simply holding the wage levels of the public sector down while public sector debt is diluted by inflation, as savers and the private sector are pillaged, then the doomsayers will be proved correct.

What happens after the elections in Europe and the US will set the trajectory of the next decade, be it an era of recession or an economic rebirth. Whatever the road, there will be inflation.

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