Inclusive Capitalism

http://www.nytimes.com/2015/01/21/opinion/can-capitalists-save-capitalism.html?_r=0

Despite the decisive victory of free-market capitalism over a planned economy, income inequality is a persistent problem in a capitalist economy. According to the article, income inequality may result in insufficient aggregate demand. Moreover, insufficient purchasing power of people in the bottom tier of income distribution may threaten the survival of corporations and the top 1 percent as they lose profit making opportunities. To overcome the problem, economists and politicians alike are proposing a modification of the current economic system of market capitalism to “Inclusive Capitalism.” Inclusive capitalism is intended to counter income inequality by restraining the accrual of wealth at the top and providing the ones at the bottom with equal economic opportunities to make the economic system sustainable. The article further details the ways in which inclusive capitalism could be implemented. The article also informs us of the constant need for economic systems to evolve and adapt in order to address new and arising economic and social problems.