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Why is the Current Economic System Unsustainable?

Across the world, people are protesting against the current system of capitalism. The recent global financial crisis has resulted in widespread anger against the way the world is run.

The current global financial system is not only unsustainable, but it is also unfair. This is not because capitalism is fundamentally bad, but because the current form of capitalism only takes into account profit, and when profit is the only motive, the system is bound to become inhumane and inequitable.

The current form of capitalism is unsustainable because of the same reason. When economics starts to function inside a bubble without taking into account the real world that we live in, it starts to malfunction. It is like applying for a credit card and using it to make all our payments, although we have no money to pay back and even the lender has no real money to lend us!

Economics cannot function in isolation, it has to take into consideration that we live in a world with finite resources, which we cannot replenish. Infinite economic growth in a world with finite resources is impossible, but this is exactly what a purely profit driven system seeks!

This is the reason why capitalism in its current form cannot succeed. The recent global financial crisis is a case in point, and so is the ever growing disparity between the rich and the poor across the world. A global society that is based on increasing consumerism can be neither just nor sustainable!