Daily Archives: June 19, 2007

“In Rome everything is for sale.” – Prince Jugurtha in Sallust’s ­Bellum Jugurthinum “Yes to market economy, no to market society.” – Lionel Jospin, French Socialist ex-prime minister It is capitalism, not communism, that generates what the communist Leon Trotsky once called “permanent revolution”. It is the only economic system of which that is true. Joseph Schumpeter called it “creative destruction”. Now, after the fall of its adversary, has come another revolutionary period. Capitalism is mutating once again. Much of the institutional scenery of two decades ago – distinct national business elites, stable managerial control over companies and long-term relationships with financial institutions – is disappearing into economic history. We have, instead the triumph of the global over the local, of the speculator over the manager and of the financier over the producer. We are witnessing the transformation of mid-20th century managerial capitalism into global financial capitalism.

The remainder of Martin Wolf’s article can be read here (FT.com subscription required). Discussion from our guest economists is free.