Economic Dynamics of Financial Capitalism: Labour Market Reforms, Welfare State Reduction, and the Impact of Technological Changes

This article delves into the economic landscape of advanced countries in our current era, delineating the defining features and policies that shape it. Beginning with an examination of financial capitalism, we explore its close relationship with labour market reforms aimed at diminishing job security, weakening unions, and reducing workers' bargaining power. Moreover, we highlight the concurrent reduction of the welfare state's role, which, unless mitigated by addressing demand crises, poses challenges in financing workers' consumption. The intertwining dynamics of technological advancements are also scrutinised, with a focus on the associated risks and opportunities. Finally, we draw policy implications from these analyses, offering insights into navigating the complex economic terrain of the present era.