Davos — I’m hoping the new path for capitalism is out of corporatism

Leaders in business and government are meeting in Davos, Switzerland this week for the World Economic Forum.

Global elite seek new path for capitalism in Davos

According to Klaus Schwab, the founder and organiser of Davos, this year’s meeting will focus on how to develop a new world model as “capitalism in its current form, has no place in the world around us.”

Of course capitalism in its current form (corporatism) has no place in the world around us.

Davos, Switzerland

“The danger for the world is that the political leadership is overwhelmed,” Schwab said on Tuesday evening as he welcomed delegates.

I guess completely fucking up a world economy must really take it out of you. I wish they’d get overwhelmed enough to quit.

Here’s a good Portfolio piece on the World Economic Forum. Sadly, there seems to be a whole lotta economic ignorance at a conference full of what Portfolio calls “leaders of finance and industry.”

The WEF’s Schwab says capitalism’s original distinction between the entrepreneur and the salaryman has been corrupted by excessive pay. He says top managers should not earn more than 20 times their lowest paid worker.

Also:

British Prime Minister David Cameron, who speaks at Davos on Thursday, says years of uncontrolled “turbo capitalism” have broken the link between risk and reward, giving some executives generous pay deals despite lackluster performance.

It’s the corporatism, people! What you’re describing isn’t any kind of capitalism, including “turbo capitalism.” You’re describing the result of collusion between government and business, with the goal of subverting the market to favor the politically connected business owners and shareholders at the expense of the worker and consumer.

You might be wondering where the occupiers are in all of this. Don’t worry, they’re there, occupying igloos.

Photo by World Economic Forum.