Jean Lievens: Bank of England Governor – Capitalism Doomed Without Ethics

Civil Society, Commerce, Commercial Intelligence, Cultural Intelligence, Ethics, Money, Banks & Concentrated Wealth, Resilience, True Cost
Jean Lievens
Jean Lievens

Bank of England governor: capitalism doomed if ethics vanish

Mark Carney issues strong critique of City behaviour and warns of growing sense that basic social contract is breaking down

Angela Monaghan

The Guardian,

Capitalism is at risk of destroying itself unless bankers realise they have an obligation to create a fairer society, the Bank of England governor has warned.

Mark Carney
Mark Carney

Mark Carney said bankers had operated a “heads-I-win-tails-you-lose” system. He questioned whether traders met ethical standards and said that those who failed to meet high professional standards should face ostracism.

Speaking at a City conference, the Bank’s governor warned that there was a growing sense that the basic social contract at the heart of capitalism was breaking down amid rising inequality. “We simply cannot take the capitalist system, which produces such plenty and so many solutions, for granted. Prosperity requires not just investment in economic capital, but investment in social capital.”

In a strongly worded critique of City behaviour in the run-up to the financial crisis, Carney said market radicalism and light-touch regulation had eroded fair capitalism, while scandals such as the rigging of Libor markets had undermined trust in the financial system.

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Phi Beta Iota: The extreme rich are starting to realize they have created their own bubble. Two memes are current with them now: inclusive capitalism and social capital. Two memes are not yet appreciated by them: human capital and true cost economics.

See Especially:

Nafeez Ahmed: Inclusive Capitalism an Empty Public Relations Campaign?

See Also:

Corruption @ Phi Beta Iota

Griftopia @ Phi Beta Iota

Human Capital @ Phi Beta Iota

Inclusive Capitalism @ Phi Beta Iota

Social Capital @ Phi Beta Iota

True Cost Economics @ Phi Beta Iota