The stock market in 2024 continues to break new records, but U.S. consumer confidence hovers around the same levels as during the 2009 recession. Protesters on the left chant “eat the rich,” while those on the right claim the “system is rigged.” Is capitalism broken? Will more regulation fix the economy?
In his new book, What Went Wrong with Capitalism, Ruchir Sharma argues that the government already has an outsized role in the U.S. economy. By simultaneously serving as regulator, borrower, and spender, the government has distorted the economy and created a system of “socialized risk.” Sharma joined FP’s Ravi Agrawal for an in-depth conversation about his book and about how to solve the problem.
Growing numbers of Americans feel the economy is rigged against them. Investor Ruchir Sharma argues that today’s system is not capitalism, but rather a system of “socialized risk.”
Sharma says that the government’s approach to managing the economy has become counterproductive with “zero tolerance for any pain or any risk.”
Ruchir Sharma responds to the critique that his embrace of free-market policies could harm middle class families.
Ruchir Sharma
Author, What Went Wrong With Capitalism
Ruchir Sharma is a bestselling writer and investor. He is a contributing editor and columnist at the Financial Times and the author of five books, the most recent of which is What Went Wrong With Capitalism. After 25 years at Morgan Stanley, Sharma is now the chair of Rockefeller International and founder of Breakout Capital, where he is the chief investment officer.
Ravi Agrawal
Editor in chief, Foreign Policy
Ravi Agrawal is the editor in chief of Foreign Policy, the host of FP Live, and a regular world affairs analyst on TV and radio. Before joining FP in 2018, Agrawal worked at CNN for more than a decade in full-time roles spanning three continents, including as the network’s New Delhi bureau chief and correspondent. He is the author of India Connected: How the Smartphone Is Transforming the World’s Largest Democracy.
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