David Cameron outlined a new, updated economic orthodoxy in a speech at the World Economic Forum in Davos.
He stressed that open markets and free enterprise are still “the best way to increase human wealth, health and happiness”, but that we need to make capitalism popular again if it is to succeed.
He laid out the reasons why capitalism has become so unpopular with the public:
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The apparent absence of a moral framework
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The disconnection between capitalism and people’s lives, with individuals feeling like “flotsam in some vast sea of business”
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The incredible inequality of the modern world
“This is what too many people see when they look at capitalism today: markets without morality; globalisation without competition; and wealth without fairness. It all adds up to capitalism without a conscience and we’ve got to put it right.”
David stressed the importance of shaping capitalism to suit the needs of society rather than shaping society to suit the needs of capitalism.
He explained that that means “standing up to business when the things that people value at risk,” creating vibrant, local economies, and spreading opportunity and wealth and ownership more equally through society.
David concluded by outlining a new, updated economic orthodoxy:
“A new monetary activism. Traditional fiscal responsibility. And a new, more popular capitalist system – capitalism with a conscience. That is the way to meet the great challenges of this moment. And that is the way that this generation can build a legacy for our children we can all be proud of.”
Read David's full speech at the World Economic Form, Davos.