OECD Discusses "Capitalism Re-Defined"

The Organisation for Economic Cooperation and Development (OECD) has been a leader in developing new ways to measure the economy that go beyond GDP and other traditional metrics. In particular they have been integrating ideas from research on inequality, green growth, and their Better Life Index to develop new ways of thinking about inclusive growth In that context they invited INET Executive Director Eric Beinhocker to give a talk to OECD staff on his recent article with Nick Hanauer in Democracy (Winter 2014) "Capitalism Re-Defined". The presentation generated a vigorous discussion about whether capitalism can be fundamentally viewed as a system for "solving human problems". The discussion also explored whether and how prosperity might be measured by examining the set of solutions available at a point in time, the growth of new solutions over time, and the accessibility of solutions to the population. Finally, the group considered whether we need to broadly take a fresh look at the theory of welfare in economics which plays a critical role in framing many public policy choices and debates.