The stock market in 2024 continues to break new records, but U.S. consumer confidence hovers around the same levels as during the 2009 recession. Protesters on the left chant “eat the rich,” while those on the right claim the “system is rigged.” Is capitalism broken? Will more regulation fix the economy?
In his new book, What Went Wrong with Capitalism, Ruchir Sharma argues that the government already has an outsized role in the U.S. economy. By simultaneously serving as regulator, borrower, and spender, the government has distorted the economy and created a system of “socialized risk.” Sharma joined FP’s Ravi Agrawal for an in-depth conversation about his book and about how to solve the problem.
Video clips from this event
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Growing numbers of Americans feel the economy is rigged against them. Investor Ruchir Sharma argues that today’s system is not capitalism, but rather a system of “socialized risk.”
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Sharma says that the government’s approach to managing the economy has become counterproductive with “zero tolerance for any pain or any risk.”
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Ruchir Sharma responds to the critique that his embrace of free-market policies could harm middle class families.
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Sharma explains why he found Jake Sullivan’s 2023 speech, which articulated a larger role for government in the American economy, so “jarring.”
