Capitalism 4.0- Four Megatrends

Capitalism 4.0

Anatole Kaletsky's book identifies 4 major trends that he believes will continue to shape the future of capitalism.

     #1 Three Billion new consumers.
     The Chinese movement toward capitalism will produce 3 billion new consumers ,
       producers of income, and savers. This step by the Chinese government to join the
       world economy can not help but add to financial activity and interrelationship with
       other countries.
    #2 Globalization
    The effects of globalization will continue to cause new market competition, the
      expansion of private enterprise and free trade.
    #3 The Great Moderation
     The period of stability (The Great Moderation) has brought about a time where the
       rates of inflation, unemployment and economic cycles have been more stable and
       not gone to "Boom and Bust" extremes. This has changed our expectations of the
       functioning of capitalism.
    #4 A Financial Revolution
      The economic beliefs following the Keynesian regulations of the 1930s have
      changed during the Reagan and Thatcher years to a non interventionist economic
      policy where the free market principles have resulted in the buildup of Asian
      savings, access to cheap money in the U.S. and U.K. , credit spending and demand
      management. This has altered the thinking and beliefs of an entire generation.

In spite of this latest crisis (2007-2009) capitalism will have gained from its experiences and morphed to a new form. At this point, the full extent of the changes that are occurring and yet to be fully achieved but changes will come. Future capitalism will be  different and as the author suggests will still be under the influence of the four economic megatrends.