By David Ngwu
For students curious about capitalism, economic theory, and the ideas shaping the world we live in.
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📚 A Night at the London School of Economics: “Capitalism and Its Critics”
On the 28th of May, I had the chance to attend a fascinating lecture at the London School of Economics (LSE)delivered by John Cassidy – the author of Capitalism and Its Critics – a recently published book that’s already sparking conversation in academic circles.
As someone preparing to study economics, I went in equal parts excited and a little nervous. After all, capitalism is one of those big, world-shaping ideas that can feel overwhelming. But the energy in the lecture hall—the buzz of students, faculty, and curious minds—was contagious.
John Cassidy, a seasoned academic with a background in political economy and economic history, didn’t disappoint. He delivered a talk that was as engaging as it was thought-provoking, tracing capitalism’s evolution and confronting its critics head-on.
Here’s what stuck with me most:
✳️ Capitalism Isn’t One-Size-Fits-All
One of the most compelling ideas from the lecture was that capitalism isn’t a monolith. It’s not a single, static system but rather something fluid—something that’s morphed over centuries, shaped by culture, politics, and global events.
“There’s not one capitalism,” Mr. Cassidy explained, “but many versions of it.”
That’s why capitalism in the U.S. feels different from Sweden’s model—or Japan’s. It’s moulded by the societies it exists in, making it both adaptable and complex.
So, Why All the Criticism?
The book (and the talk) didn’t shy away from capitalism’s shortcomings. Some of the common critiques explored included:
- Inequality – the growing gap between rich and poor
- Exploitation – workers often don’t receive their fair share
- Instability – economic cycles of booms and busts
- Environmental harm – profits prioritized over the planet
These critiques aren’t new. In fact, many were first voiced in the 1800s by Karl Marx, who famously warned that capitalism contains the seeds of its own undoing.
🔍 A Nuanced Perspective
What I really appreciated was the balance in the author’s approach. This wasn’t a capitalist cheerleading session, nor was it a complete takedown. Instead, it was thoughtful, measured, and deeply curious.
The book asks tough questions: Where does capitalism succeed? Where does it fall short? And what could a better economic future look like?
For me, it was a reminder that economics isn’t just about data or theory—it’s about people, power, and the choices we make as societies.
Let’s Take a Step Back: What Is Capitalism?
Now that you’ve gotten a taste of the lecture, let’s take a closer look at what capitalism actually is—and how it stacks up against other economic systems.
🧠 The Basics
At its core, capitalism is an economic system where:
- Most businesses are privately owned
- Prices and production are shaped by markets
- People work for wages, and companies aim for profit
A simple way to think about it: imagine starting a lemonade stand. You buy lemons and cups, set your prices, and keep what’s left after covering your costs. That’s capitalism in action—on a small scale.
Zoom out, and you’ll find capitalist systems at work in places like the U.S., Germany, and South Korea—each with its own mix of market freedom and government oversight.
🧱 Key Features of Capitalism
| Feature | Description |
|---|---|
| Private Property | Individuals and companies can own assets and businesses |
| Free Markets | Prices are set by supply, demand, and competition |
| Wage Labor | People sell their labor in exchange for income |
| Profit Motive | Businesses strive to earn more than they spend |
| Capital Accumulation | Profits are reinvested to grow and expand |
Alternatives and the Thinkers Behind Them
Capitalism isn’t the only way to organize an economy. Let’s look at some other systems—and the thinkers who helped shape them.
🔴 Socialism (Karl Marx)
Socialism promotes collective or public ownership of resources. It favors equality and cooperation over profit and competition.
Karl Marx, one of the most influential critics of capitalism, argued that:
- Capitalism inevitably creates inequality
- Workers are underpaid for the value they produce
- Over time, capitalism would collapse and be replaced by socialism
Example: In a socialist economy, industries like energy or healthcare might be state-run to ensure equal access for all.
⚖️ Mixed Economies (John Maynard Keynes)
Most modern economies are hybrids. They blend free markets with varying levels of government involvement.
John Maynard Keynes, a 20th-century British economist, believed that:
- Capitalism is efficient but often unstable
- Governments can stabilize the economy through spending during downturns
- Public services like education and infrastructure are essential for long-term growth
Example: In the 2008 financial crisis, many governments used Keynesian strategies to avoid deeper economic collapse.
🟢 Green or Eco-Socialism (Contemporary Critics)
As climate concerns grow, many argue that capitalism’s growth-at-all-costs mindset isn’t sustainable.
Thinkers like Naomi Klein and Kate Raworth (author of Doughnut Economics) offer fresh models that:
- Prioritize ecological limits
- Shift focus from GDP to overall well-being
- Encourage circular economies and sustainable living
Example: The idea of a “circular economy”—where products are reused, shared, or recycled—is central to these new frameworks.
🤔 Why All This Matters
Studying economic systems isn’t just academic—it’s a way to better understand the world around you.
It helps you:
- See through headlines and political rhetoric
- Engage with real-world issues like inequality, climate change, and healthcare
- Think critically about what kind of future you want to help build
The LSE lecture reminded me that capitalism, for all its strengths, isn’t without contradiction. It can fuel innovation—but also inequality. It can drive prosperity—but sometimes at the cost of stability or sustainability.
Final Thoughts: Learning from Capitalism and Its Critics
What stuck with me most is that the book—and the lecture—aren’t trying to crown one system as the winner. Instead, they invite us to think deeply about trade-offs, values, and possibilities.
Whether your path leads you to finance, policy, activism, or academia, understanding capitalism (and its critics) gives you tools to navigate a rapidly changing world.
So, if you’re just starting out in economics—or even just curious—I’d highly recommend Capitalism and Its Critics. It’s more than just a book. It’s a doorway into centuries of debate, discovery, and the never-ending question of how we should organize our lives.
🧭 Want to Keep Exploring?
Here are a few great places to dive deeper:
- 📘 The Communist Manifesto – Karl Marx & Friedrich Engels
- 📘 The General Theory of Employment, Interest and Money – John Maynard Keynes
- 📘 Doughnut Economics – Kate Raworth
- 🎥 [YouTube] Crash Course Economics – Quick, engaging intros to economic ideas
- 🌍 Why Nations Fail – Daron Acemoglu & James A. Robinson
“A marvellously lucid overview of capitalism’s critics, written in good old-fashioned expository prose”
-Pratinav Anil
Guardian
Mind Over Markets 
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