Western capitalism is in trouble. For decades investment has been falling, living standards have stagnated or declined, and inequality has risen dramatically. Economic policy has neither reformed the financial system nor restored stable growth.
In this joint lecture, Mariana Mazzucato and Michael Jacobs, drawing on their new book, Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth, explain inadequacies of orthodox economic theory and the failure of economic policies informed by it. They show how alternative economic approaches can better explain how capitalism works, why it often doesn’t, and how it can be made more innovative, inclusive and sustainable.
Michael Jacobs, an environmental economist and political theorist, is Visiting Professor in the School of Public Policy and Department of Political Science at University College London.
Mariana Mazzucato holds the RM Phillips chair in the Economics of Innovation at SPRU in the University of Sussex.