Capitalism Also Fails to Provide Answers

TEHRAN (Iran News) Communism and socialism have largely faded from global competition, while liberalism — through various adaptations such as the Austrian and Frankfurt schools and later neoliberalism — continues to breathe, albeit amid growing challenges and contradictions.

The future of capitalism, as the world’s dominant economic and political system, remains a deeply contested topic among economists, philosophers, and policymakers. Several possible scenarios can be envisioned for its trajectory:

1. Continuity and Transformation

(The most likely short- and medium-term scenario)

Capitalism, owing to its remarkable adaptability, will likely persist, albeit in new forms designed to ensure its survival. A sustainable form of capitalism may emerge — one that integrates profitability with greater social and environmental responsibility in response to climate change and shifts in global power structures.

2. A Stronger Role for Governments

Undoubtedly, the role of states in overseeing and regulating markets — particularly in technology, healthcare, and environmental sectors — will expand. We are already witnessing the rise of “state capitalism” or “capitalism with Chinese characteristics” in several major economies.

3. Technological Disruption

Emerging technologies such as artificial intelligence and blockchain are reshaping business models and redefining ownership structures.

However, critics argue that capitalism’s inherent crises — including widening inequality, recurring financial collapses, resource exploitation, and declining profit rates — may eventually become unmanageable. The widening gap between rich and poor could lead to political instability, mass protests, and the erosion of the system’s legitimacy.

Environmental crises — largely driven by unchecked economic growth — also threaten the very foundations of the global order.

In the future, despite these challenges, we may see the emergence of a global mixed economy, blending elements of capitalism with robust social programs, wealth redistribution policies, and government control over strategic sectors. This model aims to combine market efficiency with social justice and environmental sustainability — much like the Scandinavian countries today.

Ultimately, the capitalism of the future will be forced to confront and respond to issues of inequality, environmental sustainability, and ethics. Otherwise, it risks spiraling into deeper instability and crisis across all fronts.