Thank you for your comments to my video on the Left vs the Right.
Yes, Yehoram, the capitalist system is not healthy.
The hidden hand is not hidden at all. It is the hand of regulating government. It is politically driven government that regulates the market. Not capitalism as originally conceived. But socialism is dead where applied too, as one of the readers says rightly so. Those countries that tried socialism are now immune to the idea. Had a very bad experience.
So what is the answer?
Some readers in their commentary asked me if it is the Scandinavian model of socially conscious capitalism. It is better than vulgar capitalism but it is not good enough. The tax rate in these countries discourages economic growth.
By the way, at the beginning of the 1970's I was invited by the Prime Minister of Sweden to deliver a presentation on industrial democracy to the parliament. Later I was on stage with Olaf Palme, the future Prime MInister of Sweden. They were exploring what model to use.
You can say Germany also has something better than vulgar capitalism. It is called co-determination where unions sit on the board of companies. More integration than the confrontative, adversary relationships the capitalist system fosters.
These systems are better than nothing but not good enough.
What is needed is a system or integrated decentralization.
Decentralization is necessary in a rapidly, chronically changing environment. In times of change you want flexibility; It is better to have a flotilla of well coordinated T Boats fighting than an air craft carrier. It takes it five miles to make a turn....
The question is how to decentralize and still be integrated?
We need integration at the ground level. Socioeconomic integration. Today this integration is done, for the USA, in Washington. More and more so. States are losing power. And within States, municipalities. And within municipalities, enterprises. And within enterprises, the working men and women.
Increasingly, not only the capitalist system is dying but with the disempowerment, democracy is dying too. To go into more details needs a book. It exists: Ichak Adizes and Elizabeth Mann Borgese : Self Management - New Dimensions to Democracy. Also: Ichak Adizes: Industrial Democracy : Yugoslav Style
Both available from adizesbooks.com
I know. I know.The Yugoslav experiment failed. So we should learn from it and improve on it. I know, the kibbutz movement failed. Again: failures are invitations to learn. Throw out the bad, out and keep the good.