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State capitalism as a viable alternative to liberal capitalism?

As it is plenty suggested in The Economist, state capitalism is gaining a big relevance and significance in nowadays Western world. Since the beginning of the economic crisis in 2008 this new manner of working with the liberal capitalism is strengthening; in the following lines, retrieved from Time Business, it is clearly displayed what is the scenario regarding a post beginning-of-the-crisis world; how the state capitalism has so much to do in the new economic juncture:

“In the wake of the 2008 financial crisis, the debate over the proper role of the state in a modern economy has been reopened. In the U.S., Tea Partiers advocate their own version of “small government” to promote economic recovery, while President Barack Obama promotes more active government policy to create jobs. Others, meanwhile, wonder if Washington needs an “industrial policy” to nurture new sectors, like green energy, to help the U.S. compete with China. In Europe, politicians are grappling with how to regain competitiveness through liberalization while still maintaining the extensive social protection of their welfare states.

In emerging markets, however, a significant state hand in economic development is far less controversial. Many of today’s up-and-coming economies either have had their state-led development period, or are still very much in the midst of that experiment – most of all, China. And it has not gone unnoticed among some analysts in the West that many of these same emerging markets have also generally maintained their growth despite the devastating global downturn. So as the market economies of the West falter, some have asked if “state capitalism,” that mix of market forces and state control, can produce better economic results than the laissez faire economic models favored in the U.S.”

What it is suggested here is exactly what has bring us to discuss. The government has more to do in the free market than what we can expect, because, being honest, nowadays there is no state that can boast of having a real and absolute free market. There is always a minimum control on the economical activities, and it has hugely increased recently. We only have to focus on the banks: the states are breaking their minds to lighten their economical debts (with “theirs” I am referring to “their banks”), asking for more and more money to be transferred from the IMF (International Monetary Fund) or the ECB (European Central Bank), so that they’ll get enough liquid money, in order to make possible the granting of credits.

The model of the so-called state capitalism is China. Retaking what Time Business says about the state capitalism-liberal capitalism debate, this is what adds relating to China:

“Yes, the economy continues to grow at a stellar pace and a big reason why is the role of the government. The country powered through the Great Recession to a great degree because of government stimulus, credit from state banks and investment by state corporations. Over the long term, the support of the state has also aided the country’s rapid advance into global manufacturing.”

Now, state capitalism might seem to be a perfect manner to control the economic crisis and to stabilize social welfare, but this is not entirely true (because, if so, we would have found the perfect new economic system). Too heavy a state hand – through, for example, bureaucratic meddling in the financial system and government control of the value of the Yuan – is creating an economy with serious distortions, including rising levels of debt, excessive investment, even more excessive external surpluses, and a potential banking crisis.[1]

Therefore, the economic crisis is not only that: it is a crisis of a corrupt and worn out system that threatens with its end. The liberal capitalism is naturally cyclic, which tends to decline between certain time periods, but what happened four years ago is a massive abuse of the system, a worldwide collapse of rusty economic gears. Whether the strong introduction of the state in the market will improve the outlook, maybe it will. What it is certain, in my opinion, that any kind of capitalism is drown, and a new and trustful system must be carried out.


[1] Schuman, Michael. State capitalism vs the free market: Which performs better? September 30, 2011. Retrieved the 8 May 2012 from Time Business:


Relevant sources on Jay Asher

March 27, 2012 Leave a comment

When I came across with the american writer, Jay Asher, I instantly wanted to know more about him. Unfortunately, the information given by Wikipedia wasn’t deep enough to follow his carreer so I decided to seach more about his work.

From his most famous novel, Thirteen reasons why, I found it necessary to analyse which had been his influences or “reasons why” he decanted himself in favour of youth public, instead of adult public. The best way of answering this cuestions was finding an interview made to him, and that is exactly what I got after making some reseaches. This kind of interviews provide a large amount of information about the author that other kind of sources just can’t, such as life experiences or data about their personal motivations and explanations about the novels they’ve written. Read more…

The future of Facebook: will people get bored of it?

December 19, 2011 1 comment

Nowadays, the massive use of social networks is creating the need of a continuous dependence to it. As can be seen in the statistics of Facebook’s business site, it has “More than 800 million active users” worldwide; it is an absolute successful phenomena, which is gaining even more followers in the last year. For instance, according to a recent research, run by Mary Madden and Kathryn Zickuhr, the amount of social media adult-users has grown significantly in the last year: “(…) among the Boomer-aged segment of internet users ages 50-64, social networking site usage on a typical day grew a significant 60% (from 20% to 32%)”. Hence, ones seen how powerful and popular has the use of social media become, could we think of a future end to them? Read more…

Categories: Social networks

George Orwell’s 1984: was it all a ficticious reality?

November 18, 2011 1 comment

The novel 1984 was published by the English author George Orwell in 1949. It was made as a prediction of a fictitious future in which the Human Rights would be minimum and the world would be involved in a constant war. The aim os this post is to analyze the impact of this novel; what essential ideas are underlined on it and which of them still reflects nowadays’ world. Read more…

Twitter: a good educational tool?

November 13, 2011 Leave a comment

Twitter has been suggested to be an optimus manner for children to learn communication and interaction skills, which any other methods or platforms could never provide us with. Therefore, we would be witnesses of a revolutionary new way of teaching. Now, the question is, is Twitter a really good tool for education?

First of all, let’s analyse what positive aspects have working on Twitter with the youngest students:

What experts appeared to underline the most is children’s literacy development. According to Mike Laurie, a worker of the agency Made by Many in London, taking part in social media helps children to avoid literacy and does increase their ability to express their ideas with grater clarity:

“It stands to reason that children who read and write more are better at reading and writing. And writing blog posts, status updates, text messages, instant messages, and the like all motivate children to read and write. Last month, The National Literacy Trust released the results of a survey of over 3000 children. They observed a correlation between children’s engagement with social media and their literacy. Simply put, social media has helped children become more literate. Indeed, Eurostat recently published a report drawing a correlation between education and online activity, which found that online activity increased with the level of formal activity (socio-economic factors are, of course, potentially at play here as well).” Read more…

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