Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Capitalism isn't working anymore. Here's how the pandemic could change it forever

Capitalism isn't working anymore. Here's how the pandemic could change it forever

Capitalism is in crisis. The pandemic could change it forever, in favor of workers and those in greatest need.

Covid has put a magnifying glass over the many inequalities of the US economy and society. Millions of Americans are still out of work. Women and minority workers have been hit particularly hard. Many people can't afford child care or the technology their children need for distance learning at school.

The playing field wasn't level before, and the virus has shone a new light on the shortcomings of today's economic and social systems, said Paul Collier, economics and public policy professor at Oxford. The World Economic Forum has already called for a "great reset" of capitalism.

It's emblematic of today's capitalist society that groups of people get left behind, and it's the job of policy makers to try to fix that.

This isn't the first time capitalism is in crisis. In the 1950s - America's so-called golden age - there were concerns about automation eliminating jobs and people falling through the cracks of the government's safety net (sound familiar?). And in 2008, corporate greed came under the microscope following the financial crisis.

In modern history, only the Great Depression was more economically devastating than Covid-19. The aftermath of the Great Depression - relief, recovery, and most of all, reform - may once again be necessary to create a better economy for the future, said Larry Glickman, professor of American studies at Cornell.

It will be hard to sweep all of America's economic issues under the rug again when the pandemic is over.

"We are pregnant with change," said MIT economics professor Daron Acemoglu.

Here are three ways the pandemic might change capitalism forever:


A new social safety net

The pandemic exposed the cracks in America's social safety net. Enter the welfare state 2.0, which could be more attuned to workers' needs, experts said.

"We're in a moment where the pendulum is [swinging] towards a more favorable view of what government can do," Glickman said.

Better-designed unemployment benefits, programs to help people back into the workforce and more affordable housing could help ease the burden of this crisis for the weakest members of the economy.

Millions have lost their jobs in the pandemic, but regular unemployment benefits are often not enough to make ends meet, while rents eat up a large chunk of incomes across the country. As the pandemic drags on, hunger is an increasing problem, too.
On top of that, workers in mostly lower-paid jobs have found themselves at risk for contracting the virus at their workplace, including casinos, meat processing plants and shipping warehouses.

Paying to replace these workers' wages won't come cheap, and will likely mean that taxes will have to rise while still staying low enough not to stifle business, economists agree. It's a tightrope.


Globalization and automation challenge the manufacturing sector

Globalization goes hand in hand with capitalism. It has changed the way money and people move around the world.
A big challenge for policy makers is to deal with how that has affected workers.

In today's capitalism, money is, for the most part, considered more important than workers: If moving jobs elsewhere, or using robots saves dollars, it's done.

For workers on the wrong side of these trends, things haven't improved, and this has exacerbated inequality, Federal Reserve Chairman Jerome Powell said earlier this year. The pandemic has provided a real-life example that robots don't get sick, but human workers do.

Welfare isn't only about benefits. It also extends to education and health care. In a world where machines increasingly take over people's jobs, educating the next generation so their skills match what's needed is important.


More debt than ever before

Capitalism isn't only about how a country treats its people and workers, it's also about how it treats its money.

Covid has brought on government spending like never before and deficits are burgeoning around the world. The Congressional Budget Office predicts the US federal budget deficit will be $3.3 trillion at the end of the year - more than triple of what it was in 2019.

Debt might be one of the most prominent characteristics of today's capitalism, said Christine Desan, professor of law at Harvard.
In the post-pandemic world, policy makers will either have to accept living with enormous debt burdens or address a complete overhaul of the system in place.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
×