The Age of Extremes - Failure of Free-market Capitalism

Failure of Free-market Capitalism

None of this throws Hobsbawm into the embrace of free-market capitalism: "Those of us who lived through the years of the Great Slump still find it almost impossible to understand how the orthodoxies of the pure free market, then so obviously discredited, once again came to preside over a global period of depression in the late 1980s and 1990s, which once again, they were equally unable to understand or to deal with."

"As it happened, the regimes most deeply committed to laissez-faire economics were also sometimes, and notably in the case of Reagan's USA and Thatcher's Britain, profoundly and viscerally nationalist and distrustful of the outside world. The historian cannot but note that the two attitudes are contradictory." He points up the irony that "he most dynamic and rapidly growing economy of the globe after the fall of Soviet socialism was that of Communist China, leading Western business-school lectures and the authors of management manuals, a flourishing genre of literature, to scan the teachings of Confucius for the secrets of entrepreneurial success."

Ultimately, in world terms, he sees capitalism being just as much of a failure as state socialism: "The belief, following neoclassical economics, that unrestricted international trade would allow the poorer countries to come closer to the rich, runs counter to historical experience as well as common sense. ." (brackets in the original)