NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

By Brigit Helms

Does capitalism need a reboot? That question seems to be on the minds of many leading corporate leaders, economists, and social thinkers.

There’s no doubt that capitalism has played an important role in lifting people out of poverty, extending life expectancy, boosting industrial productivity, and improving the quality of life for hundreds of millions of people.

At the same time, there’s also no doubt that capitalism has resulted in uneven distribution of benefits and significant environmental costs. This is especially true of the form of capitalism practiced in the United States, which dates back to Milton Friedman’s mid-20th century advocacy of free markets and public corporations’ sole responsibility to increase shareholder profits. The COVID-19 pandemic has spotlighted and exacerbated these issues.

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