Ruchir Sharma - What Went Wrong with Capitalism? | Prof G Conversations

Ruchir Sharma, the Chairman of Rockefeller International and Founder and Chief Investment Officer of Breakout Capital, an investment firm focused on emerging markets, joins Scott to discuss his latest book, “What Went Wrong with Capitalism.” Follow Ruchir on X, @ruchirsharma_1.
Timestamps:
00:00 In this episode
00:42 How has capitalism been ruined?
02:42 Are we over-regulating?
04:46 Does over-regulation suppress economic growth?
06:12 Why did economies slow in the 2010s and where are they today?
09:06 Are low corporate tax rates the cause of the decline in productivity?
10:24 Where should we cut government spending?
13:15 What policies or laws would you want to see implemented right away?
15:19 What is the Indian economy like and what are its future prospects?
18:14 What rules for successful nations is the UK following and breaking?
19:49 Is the US’s advantage over Australia, Canada, and the UK due to its tech sector and AI?
21:10 Compare and contrast different nations’ immigration policies. What is the ideal policy?
22:49 Have we done a better job assimilating or do we attract a different type of immigrant?
23:32 Which economies are you most bullish on?
25:52 Thoughts on China?
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#business #news #economy #economics #capitalism #investing #UK #Biden #China #India #productivity #immigration #AI #profg #ScottGalloway #profgconversations #RuchirSharma #WhatWentWrongWithCapitalism?

Пікірлер: 145

  • @Yourmission9
    @Yourmission9Ай бұрын

    In my humble opinion lobbying is assisting in destroying the American dream. The numbers themselves far outweigh who we have in congress. Roughly 12,000 lobbyists total are going to get their agenda across, and I would venture a guess that maybe 1/10th of those are of the common citizen’s interest

  • @baffinsansterre

    @baffinsansterre

    Ай бұрын

    Lobbying place ''concentrated benefits & diffuse costs" at a higher level.

  • @jamaalgill2740

    @jamaalgill2740

    26 күн бұрын

    1/10th is even an overestimate. Id guess 1/100th

  • @steadfastanddomino
    @steadfastanddominoАй бұрын

    Not sure I understand why an overabundance of tech sector lobbyists (which I agree are too many) is more pernicious than a overabundance of ANY sector of lobbyists. We are certainly not over-regulating business; we are under-regulating business in a meaningful manner. We have a wad of elderly, wholly ineffective legislators paired with a load of uneducated, child-like partisan politicians who are entirely unable to function as a governing body.

  • @jamesmassey2089
    @jamesmassey2089Ай бұрын

    Overlooked: Prioritizing profit/efficiency maximization has led to the destruction of system redundancies which provide safety paths against failure and a larger number of income opportunities for citizens who face becoming an underclass without them.

  • @Toomanydays
    @ToomanydaysАй бұрын

    I like the pixelated Mona Lisa.

  • @ethanadkins5638
    @ethanadkins5638Ай бұрын

    He says overregulation leads to pro-incumbency and pro-big business to the detriment of the startup. That's true. But why is that happening? The reality is that the democratic systems we have constructed hold a contradiction. Government regulates business for many reasons but the most important one being to make a fair and level playing field for competition. Business relies on that and plays by the rules to succeed by giving a good or service that adds value to people's lives with a return in profit. Overtime, the businesses that are most successful start to realize that lobbying becomes a greater source of future return than anything else. Politicians goals are mainly to get elected and stay in office. Businesses lobbying government and help fund their campaigns while the politicians give them an unfair advantage in the form of new regulations. The contradiction is that the profit motive leads to distorting the level playing field. What I have just described is crony capitalism, and there is nothing in our democratic capitalist systems that can stop it. If what I am saying is at all intriguing then you all should check out Michael Munger at Duke University.

  • @daykeviful

    @daykeviful

    Ай бұрын

    Amen!

  • @christinebell37

    @christinebell37

    23 күн бұрын

    ABSOLUTELY

  • @videomakville

    @videomakville

    22 күн бұрын

    Absolutely. People generally think what you have described is a bug or glitch in the system. It's in fact a feature of the system. Politics and politicians are forever cozying up to economic might. Their elections cost a lot of money, the money comes from somewhere (the people who have it) and it's not free money, THERE ARE SO MANY STRINGS ATTACHED!😊

  • @prasvasu4217

    @prasvasu4217

    17 күн бұрын

    Best comment on this video!

  • @steveboyd3455

    @steveboyd3455

    16 күн бұрын

    Right. Now layer on top of that, international global trade and the fact that countries don't want to play by the same rules. Example China.

  • @waynelondon9776
    @waynelondon9776Ай бұрын

    I think one of the key ingredients relating to the dissatisfaction of many folks in the economic system is the lack of participation in the formation of wealth. The top 1% have accumulated much of the gains. Proper progressive taxation and reinvestment in infrastructure, education and health care will change the sentiment!

  • @23billd
    @23billdАй бұрын

    Not one word about raising taxes on the top 1%

  • @Kingromstar

    @Kingromstar

    Ай бұрын

    That won't fix it. If they taxes every single American for everything they have then the government will still in debt into their eyeballs. They're indebting people that don't even exist yet with their spending

  • @baffinsansterre

    @baffinsansterre

    Ай бұрын

    Guess for who he works.

  • @golfinguru11

    @golfinguru11

    Ай бұрын

    Chairman of “Rockefeller International” a private wealth management firm for ultra-high-net-worth families. lol.

  • @lindsaykimbrough8260

    @lindsaykimbrough8260

    Ай бұрын

    They did in a way talking about capital gains taxes.

  • @cglavin

    @cglavin

    Ай бұрын

    @@lindsaykimbrough8260 lol

  • @dixiebrick
    @dixiebrickАй бұрын

    We shouldn’t wait for thousands to die before we regulate either. Bhopal anyone? Unregulated AI? Yeah good luck with that.

  • @dixiebrick

    @dixiebrick

    Ай бұрын

    Better deficits than surpluses. A red state in the south has a 50 billion dollar surplus and declared it their own. In other words they stole 50 billion from the taxpayers and laughed all the way to the bank.

  • @Aortadetroit
    @Aortadetroit23 күн бұрын

    22,000 + views and only 502 "likes" gives me some hope in our future.

  • @parkmannate4154
    @parkmannate415412 күн бұрын

    Historically, his argument is bunk. The government was much more active in the 1950s and 60s, and productivity growth was much higher than today.

  • @morinc75
    @morinc75Ай бұрын

    "regulations tend to favor the big players", yeah wonder why! maybe we should look into that no? This guy's entire roundabout argument can be resumed to "money in politics".

  • @BTrain-is8ch

    @BTrain-is8ch

    Ай бұрын

    The result would probably be a disappointment. I'd wager that most people vastly underestimate the amount of "common sense" regulation people actively support that ultimately serves as a barrier to newcomers in the space. Example? Regulations around building real estate. I heard recently that depending on where you are in the country 1-200k of the cost of building a home comes from regulatory compliance and navigating the legal processes. Who wants to compete to build "affordable" houses when you know from square one that you can't even begin to build for less than 1-200k?

  • @pictureworksdenver
    @pictureworksdenverАй бұрын

    The premise that the neoliberal era has been qualified by over regulation is laughable at its face. Tepid GDP growth since the GFC (the Silent Depression) has more to do with stagnant wages, unchecked monopolies and a massive upward transfer of wealth than a lack of "productivity" of American workers, who, aided by technology, are considerably more productive than they were decades ago but don't have the wages to show for it.

  • @Rojosi
    @RojosiАй бұрын

    Sharma is on point regarding issue of Gov intervention and low productivity as key issues in AUS. Current Gov policies are steadily eroding opportunity for anyone looking to start a business or company. Min. wage is now $24.10. Largest no. of company liquidations in 10yrs, building industry collapsing while desperate need for housing, energy costs unsustainable, 30+ companies delisting from ASX and majority of jobs created this year from sectors directly off Gov subsidied sectors like aged care and health. Australians are happy to contribute to better overall society until their standard of living is impacted, socialism works when someone else pays for it.

  • @steveboyd3455
    @steveboyd345516 күн бұрын

    The problem is us, citizens. We want everything, all the services that government can provide. And we don't want to pay taxes to pay for it. It's called greed. So the problem is not capitalism, it is democracy and the fact that politicians who want to be elected are keen to respond to that greed and do provide services and don't press for taxes, and thus we run up large debts.

  • @augustoliver2779
    @augustoliver277920 күн бұрын

    I think most Americans are clueless about what life is like outside of America. Making a living abroad is so much harder than in the US. Yes, the US has its problems, and life here used to be a lot easier than it is now, but it is still better than all the countries in Central and South America, Africa, the Middle East, and most Asian countries.

  • @MehdiSyed456
    @MehdiSyed456Ай бұрын

    The whole capitalistic idea was very short sighted. China has proven how it can be easily undermined by state subsidies, they have been very successful in insourcing entire industries. Not to mention, Capitalism doesn't pay much heed to environmental destruction or basic decent human moral justifications!

  • @peteg6118
    @peteg6118Ай бұрын

    Can you imagine the exploitative nature of our economy and society if government did not regulate the commons. The notion that regulations in general should be curtailed to enhance growth focuses too narrowly on economic growth over protecting the wellbeing of our society. I believe we need common sense regulations even if that slows growth because humans tend to do stupid shit.

  • @fanemanelistu9235
    @fanemanelistu9235Ай бұрын

    The usual "socialism and government are bad; unfettered capitalism is good". Yawn!

  • @Trials_By_Errors
    @Trials_By_ErrorsАй бұрын

    Only way to Raise Productivity is High Interest rate and end of free money.

  • @zeruchofficial
    @zeruchofficialАй бұрын

    The volume of regulatory rules is less telling than what they do. Complaining about the number of regulatory rules without assessing their efficacy or span of influence is a pointless, and based on his statements, bordering on intentionally disingenuous, especially where you consider "cost of doing business: is added to to keep bad behavior from occurring. You could make an argument for simplification of a lot of regulatory measures (e.g make all fines intentionally punitive based on revenue volumes such that 'cost of doing business' becomes 'cost of losing the farm', break up 'too big to fail' institutions, and put bad actors in federal prison) and put real teeth in them, and I suspect things will clean up pretty quickly.

  • @thomas6502
    @thomas6502Ай бұрын

    "Two" many incumbencies? I'm reminded of a song from my youth by a group called the Cult. It went something like "he's gone crazy trying to tame the American horse..." I loved the imagery as a teen of unbridled opportunity--as an adult that wild horse feels like trampling governments in need of taming. Here's to hoping the American horse can both retain its powerful inspiring presence (people, innovation, aspiration to serve humanity) and to do so without crushing the struggles at the genesis of invention.

  • @Rahul-ki8ps
    @Rahul-ki8psАй бұрын

    Why is this guy's interview just 28 mins? Usually the interviews go on for much longer

  • @okkomp

    @okkomp

    Ай бұрын

    28 mins was too long

  • @zeruchofficial

    @zeruchofficial

    Ай бұрын

    His whole schtick could be reduced to 2.8 minutes

  • @raos4987
    @raos498721 күн бұрын

    High govt spending is pointed as the main reason why capitalism is not doing well in America and the west. Also higher regulatory interventions from Govts is another reason. In old classical economics of Keynes times govt spending should step in if the private spending doesn’t fuel the economy for higher growth. For instance in just ended pandemic period Govts had to step in to give cash doles to people as most of them have lost jobs. But most of the money hasn’t been spent but ended up in savings. So the intention of keeping economy running through uninterrupted spending has suffered. India that way managed pandemic spending by not encouraging cash doles. Rather it supplied food grains, covid vaccines, etc free to nearly 80% of its population. This way it did not overshoot its budget deficit.

  • @DS-yf2md
    @DS-yf2md22 күн бұрын

    Good to listen to two of my icons talk. Topic and Talk was amazingly interesting.

  • @bastroman4845
    @bastroman4845Ай бұрын

    This does nothing for my young male anger and the disrespect for my labor is felt.

  • @atg1962
    @atg196220 күн бұрын

    I read Sharma's previous book, The Rise and Fall of Nations. He is little more than a shill for Wall Street Ideology. Disappointed that Scott would give him the platform.

  • @SunilKumar-tj8rp
    @SunilKumar-tj8rp18 күн бұрын

    Has the world become too complex to find one solution fit in terms capitalism versus other system

  • @mdecav
    @mdecav25 күн бұрын

    One of the first stats Sharma mentions is 3,000 new regulations each year. How many of them are on new industries that didn't previously exist? We have a growing economy and new industries are created all the time so of course there will be new regulations.

  • @imkindofabigdeal4308
    @imkindofabigdeal4308Ай бұрын

    Churn is good. But churn won't happen if we combine bailouts with over-regulation of startups. There is little incentive for changing the status-quo in an environment of regulatory capture and incumbent-driven lobbying.

  • @guptaajay
    @guptaajayАй бұрын

    empire always fall sooner or later, it is a lifecycle. There was always a reason that cause it.

  • @dee-jay45
    @dee-jay45Ай бұрын

    I know Prof G dodged the issue but it's a very real issue problem that the USA usually attracts the best, brightest and most ambitious immigrants from all over the world, whereas Europe mainly attracts refugess from all the failing nations it is surrounded by. And this is something Americans fail to understand when assessing immigration elsewhere.

  • @deepomouli
    @deepomouliАй бұрын

    The point that Ruchir makes about concentration in stock market is not unique to current market.This has always been the case.In an index of 30 stocks,it is 10 - 15 stocks which are giving 80% of gains.

  • @jtkrause
    @jtkrauseАй бұрын

    He lost me when he said that there's not much we can do about population growth declining. How about government incentives to have kids? Like: national healthcare, paid time off, government funded daycare.

  • @akcj875

    @akcj875

    9 күн бұрын

    Govt should not be controlling birth rates or deaths. This govt messed up economy...

  • @trails3597
    @trails359722 күн бұрын

    Canada has more ultra-rich/capita than any developed country (excluding city states). This means more oligopoly billionaires than most but they are not flashy.

  • @samarthbagwe1736
    @samarthbagwe1736Ай бұрын

    India just achieve 8.2% economics growth Indi in the past have achieved 10% economic growth We need long term yearly consistency

  • @asafh04
    @asafh04Ай бұрын

    What does he have to back up any of his talking points?

  • @nmk5003
    @nmk5003Ай бұрын

    This strikes me as a complete non-analysis of the current state of the global economic system, I would encourage anyone who watches this podcast to read The Knowledge Economy by Dr. Roberto Unger. It offers a far more prescient analysis of malaise affecting our time and a far more convincing critique of why growth rates have dropped globally.

  • @JiraTicket-zz6bh
    @JiraTicket-zz6bhАй бұрын

    I was passively listening til Ruchir mentioned Greece. My dude you have no idea what you are talking about. The average Greek is starving while walking in 2 jobs. Most of the middle class have left the country. The rest have become bargaining chips between the government and 2 billionaires.

  • @tayaramecanici
    @tayaramecaniciАй бұрын

    Ruchir Sharma got his education and wealth from the Congress party. One of his team chasing Indian election is Swaminathan Aiyer, he is older brother of Mani Shankar Aiyer, all same goons in the congress. These brothers mother taught in Doons in Dehra Doon, where Mani was Rajiv Gandhi mate. You know the rest about Ruchir Sharma, Paise mein paida aur Rockefeller is for investment in India going forward. He brought into Rockefeller last year.

  • @neurodivtries4101

    @neurodivtries4101

    23 күн бұрын

    What is wrong about Ruchir's credentials with anything you said?

  • @DanielSmith-sl3pv
    @DanielSmith-sl3pvАй бұрын

    I totally agree with need to address USA debt/deficits down to a total of

  • @sukhdevsohal5172
    @sukhdevsohal517222 күн бұрын

    Well-done Ruchir Sharma. Capitalist critiquing Capitalism. Karl Marx must be laughing out.

  • @AudiTTQuattro2003
    @AudiTTQuattro2003Ай бұрын

    If politicians and courts could be counted on to serve the people, his capitalism would work. Since they are so easily swayed by $, it doesn't. Pretty simple really.

  • @AndyWallWasWeak
    @AndyWallWasWeakАй бұрын

    anyone who controls the spending? MIC consumed trillions, took talents from tech and healthcare sectors, yet the world is more unstable, and no political accountability for that. too late now to cut spending when the world is falling apart, see demographics, climate change, nuclear/global war. actually more efficacy is needed from government AND higher spending

  • @BuhodePiedra
    @BuhodePiedra19 күн бұрын

    We extort our own selves. It’s greed. We can do better.

  • @MetaPhysStore0770
    @MetaPhysStore0770Ай бұрын

    Why : government intervention How : government intervention Who : lawyers and lobbiests When : government regulation Where : government regulation

  • @paxdriver
    @paxdriverАй бұрын

    This is what drives me insane about interviews: one guy chews up a clock without even a basic level of common sense. Comparing productivity growth with the health of an economy is absurd if the population is changing, human/environmental rights are being enforced, lobbyists aren't the same threat as corrupt politicians who take their bribes, and tax policy changes have given awys trillions yet big-X industry is whining about regulations costing a few hundred grand after their $2 million dollar subsidies to reward them after cornering their respective markets. 9:51 "oh, oh, what happened to capitalism, it must be productivity down", well that or we're making it harder for slave labour or prejudice wages? Socialism isn't a bad word, we don't speak in extremes in academia. Socialism just means that government is in control (not necessarily command, just controls over, same as weapons makers, drug makers, food suppliers and porn publishers are supposed to be controlled by popular opinion. Socialism doesn't mean communism, it means if you take from public resources like oil, air or damage public resources like water, right of way, or cause spread of disease, then socialists suggest the government ought to have authority of control just like a drivers ed instructor with that wheel and brake they can override in case of emergency.) This is lunacy economics, rentseeking at its most repugnant. Bailing out FDIC is moral hazard, share buybacks after 2008 is moral hazard, forcing profit sharing pension plans or ta nation for unearned income equal to earned income, or consumption taxes on PPE taking the burden from low end income taxes of individuals and single parents. Child care and health care so people are capable of being more productive without dying early for it. There are studied and measured responses to all of this man's opinions and yet his "research suggests....". No, it doesn't. Lol

  • @NichoD3
    @NichoD3Ай бұрын

    This guy is full of crap. Corporate/CEO greed has ruined capitalism plain and simple. I’m sure this guy would probably be in favor of “trickle down economics” too.

  • @Kingromstar

    @Kingromstar

    Ай бұрын

    He is saying that... It is going to the incumbents via stock buy backs vs. new productivity features etc.

  • @prasvasu4217

    @prasvasu4217

    17 күн бұрын

    This is purely an idealogue comment... Even worse than the interviewee

  • @shubhamkumar-fi3pd
    @shubhamkumar-fi3pd17 күн бұрын

    He had said only two or things useful and just master on creating stories

  • @andybaldman
    @andybaldmanАй бұрын

    All the smart people know how to be critical of capitalism

  • @Long_Tail_of_Finance
    @Long_Tail_of_FinanceАй бұрын

    What I didn't hear from the author: 1) how does America compare to other countries in terms of rules & regulations 2) an acknowledgement that some of the rules & regs came about because businesses took advantage of customers. Overall I felt this book was based on junk journalism, appealing more to sensationalism / sentiment surveys and relying less of data and comparisons across other countries. What does this guy want? Unfettered capitalism running roughshod over consumers so that we can go back to the days of Adam's Smith's version of mercantilism?

  • @lilfluff758
    @lilfluff758Ай бұрын

    pixelated mona lisa is so sick

  • @jaywise991
    @jaywise991Ай бұрын

    "I saw what socialism did" - Like put me through college and enabled me to have this job...🙄

  • @okkomp
    @okkompАй бұрын

    He seems very confused

  • @anthonyjasi7528
    @anthonyjasi7528Ай бұрын

    This guy really knows how to talk so much and still say nothing at all.

  • @maverickmusic101

    @maverickmusic101

    Ай бұрын

    Ha ha

  • @prval5989

    @prval5989

    Ай бұрын

    Aah here we go again.. you should watch Joe Rogen… 😂

  • @Kingromstar

    @Kingromstar

    Ай бұрын

    "keeping alive dead wood" is nothing?

  • @MayorMcC666

    @MayorMcC666

    Ай бұрын

    its just the "bullshit jobs" thesis again

  • @tonyoramos1

    @tonyoramos1

    Ай бұрын

    He can say a lot but please consider that he cited the most important growth trends and statistics (or lack thereof) in the world and gave clear reasons why he thinks they are downturned: excess regulation, govt borrowing and population decline

  • @owls077
    @owls077Ай бұрын

    Please remove the X (Twitter) handle. The account belongs to some other Ruchir Sharma.

  • @brianlund1089
    @brianlund1089Ай бұрын

    Not sure why I'm seeing this guy everywhere when it sounds like he's just pitching neoliberalism. That system has been in force globally for 40+ years, only to be questioned in the last 5-10... I feel another wave of concern trolling about the debt coming. Of course it's something to be concerned about, but none of these clowns ever propose revenue, it's always spending cuts.

  • @brodobroggins
    @brodobrogginsАй бұрын

    Low quality guest. Has absolutely no actionable suggestions when asked.

  • @mark-tj7my
    @mark-tj7myАй бұрын

    Drop 200 billion from the military budget

  • @user-ic6xf
    @user-ic6xfАй бұрын

    Once again, the problem is government.

  • @drekmastermind
    @drekmastermindАй бұрын

    What a weak interviewee

  • @Kingromstar
    @KingromstarАй бұрын

    I like this india guy a lot, sure he is promoting his book but he the foundation is sincere. He seems to genuinely care.

  • @2596mr

    @2596mr

    Ай бұрын

    I am from India and he is one of the good economists when it comes to Indian system as well and has pointed its flaws out multiple times.

  • @mazenct
    @mazenctАй бұрын

    Thanks Scott for the remark on what kind of immigrants compared to France .. I felt like an immigrant when I studied my mba in Pennsylvania (Bethlehem).. my best teachers were American, Indian, Korean,… not sure we get these motivated people.. some of them yes.. but definitely not the same profile on average.. and that’s even before considering religion ..

  • @burgerbreath
    @burgerbreathАй бұрын

    Sorry Scott, I can’t even finish this interview. Your guest insufferable lol

  • @easterntechartists
    @easterntechartistsАй бұрын

    This guy is clueless to the max about non English countries. So much covert facts

  • @altaccount4590
    @altaccount4590Ай бұрын

    he sounds like an apologist for most right wing policies. also, nobody ever talks about how crucial illegal immigration is for the economy.

  • @cyndiluewho3286
    @cyndiluewho328624 күн бұрын

    He's saying the American government needs to go through a crisis, but what he's really saying is that the American government needs to collapse... right? I mean, how many crises does our country need to go through before the government makes the necessary changes in order not to collapse?

  • @biswajeet9826

    @biswajeet9826

    13 күн бұрын

    No😂😂 You're reading way too much "between the lines"

  • @playmaker4053
    @playmaker4053Ай бұрын

    save 40mn of ur time, let more indian migrant in, india numba one, china falling, india+usa=win lets go fellas

  • @hyperflys
    @hyperflys16 күн бұрын

    This guy knows nothing - just wants to sell a book.

  • @OGTonyB
    @OGTonyBАй бұрын

    This guy was not very good. 👎🏼

  • @adriennefried5368
    @adriennefried5368Ай бұрын

    Capitalism is the only economic system that can produce affluence and abundance if not regulated.

  • @henrytep8884

    @henrytep8884

    Ай бұрын

    Left unregulated it leads to even worse outcomes. That’s how you get “gilded” age.

  • @jamesmassey2089

    @jamesmassey2089

    Ай бұрын

    Simplistic truisms cannot be applied correctly to a complex system. Falsehoods are inevitable.

  • @AudiTTQuattro2003

    @AudiTTQuattro2003

    Ай бұрын

    Russia has unregulated capitalism. It works great for a very few.

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