Financial Markets: Increasing Complexity, Maintaining Stability

3–5 July 2019, ST. PETERSBURG

    Muhammad Yunus to RBC: “Working for others is unnatural”

    The winner of the Nobel Peace Prize explained why capitalism leads to poverty even in the US, told why he stopped giving loans to men and how he managed to turn homeless beggars into entrepreneurs.

    – What’s wrong with capitalism?

    – The problem is how it interprets a human being. Capitalism sees a human being as driven by self-interest. So the whole system is built on this belief. The fact that it is generally human to take care of others is not taken seriously. However, what is social in social sciences and economics if the social nature of a person is denied? If all people are considered self-serving by default, then how is it possible to build a social system? The social aspect is completely pushed out of the economy: modern economic theory asserts over and over that everyone wants to maximize profits. It is a fundamental mistake. The best proof of this is that the world is becoming more and more of a social business that does not seek to make money for money’s sake but looks after the social interest. It aims to solve people’s problems. That is, social enterprise rejects the idea on which modern capitalism is built. Moreover, while it works and is profitable.