Should we fix capitalism or simply return to a broken normal?
In short: The COVID-19 pandemic has unleashed a triple crisis in health, the economy, and the climate. Economist Mariana Mazzucato argues that instead of retreating to the status quo, we must rethink the relationship between state and market to solve these systemic challenges.
Since the 1980s, a dominant economic philosophy has pressured governments to take a back seat, allowing businesses to steer wealth creation while the state intervenes only to fix problems after they arise. This reactive stance has left critical public institutions weakened and unprepared for systemic shocks. For instance, the UK's NHS has faced public health funding cuts totaling £1bn since 2015. This approach often results in insufficient preparations for large-scale emergencies. Consequently, governments frequently lack the necessary equipment to manage such crises effectively.
This shift has also altered how research and development are conducted. Current public-private partnerships often prioritize 'blockbusters'—highly profitable products—over medicines that are vital for public health but less commercially lucrative, such as antibiotics or vaccines for diseases with outbreak potential. This focus can leave society vulnerable to the next contagion. This imbalance can hinder the development of essential medical tools. Such neglect leaves populations at risk when new outbreaks occur.
The pandemic has also highlighted growing inequality, particularly for workers in the gig economy who lack social protections. Mazzucato suggests that the current crisis offers a rare moment where governments hold the upper hand. Rather than just responding to broken systems, the state has the opportunity to act proactively, shaping markets and driving innovation to address the climate emergency and economic instability. This lack of a safety net exacerbates existing social divides. Such instability makes it harder for societies to withstand economic shocks.
The scale of current interventions, involving massive economic stimulus and efforts to develop new therapies, resembles a military conflict. The central question is whether we will use this momentum to build a more resilient system or merely return to a model that prioritizes business interests over the public good. Governments are currently injecting massive stimulus to protect vulnerable people. They are also working urgently to slow the spread of disease.
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Sources
- Summary by Intellect · source: The COVID-19 crisis is a chance to do capitalism differently | Mariana Mazzucato
- Also: Opinion: The Covid-19 crisis is a chance to do capitalism differently
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