our final keynote speaker needs no introduction to this audience professor

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dr. Jana summer a focus was the Greek Minister of Finance in 2015 he's a

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leading participants and current debates on the global and European financial

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crisis he is an author and professor he's authored the global minutes are

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several academic articles on game theory and economics he's a professor of

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economic theory at the University of Athens and holds visiting professorships

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at the Universities of Texas and Stockholm please please give 'em very

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warm welcome to our final keynote speaker of the day mister minister

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Yiannis faraha

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well thank you so much for one welcome it's one of the beer because basically

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is a necessity I'm going to actually argue that this is not a question of

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whether we like it or not it will be a major part of any attempt to civilize

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capitalism as capitalism is going through a spasm caused by its own

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generation of technologies that undermine itself to put it simply in the

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20 century we had the stabilisation and simulation of capitalism through the

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rise of social democracy new deeply new deal in the United States democratic

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social market developments in Europe unfortunately this social democratic New

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Deal paradigm is finished and you can not be devised actual make some comments

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on this but first let me let us remind ourselves of what the social-democratic

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New Deal tradition tradition is all about

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about two things firstly redistribution of income with the wage labor a kind of

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insurance for the working class working class ensuring the wedding plus take for

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instance the National Insurance Contributions scheme in Britain after

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the second world war unemployment insurance in the United States working

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wage laborers have faced effectively providing insurance payments to those

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out of a job

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seeing with health provision pensions those wedding today providing for the

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pensions of those who have stopped working so insurance and redistribution

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within the working class to put it bluntly the second dimension of course

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is redistribution between capital and labor between the rents and labor this

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takes the form of minimum wages that are negotiated by the state it's also

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process of collective bargaining user usually triangular involving trade

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unions employers and the state and of course taxation transfers through the

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taxation now this social democratic tradition I made a very big statement a

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moment ago today is dead in the water and it is dead in the water or dying in

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the water for two reasons for reasons that have to do with two earthquakes

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that if he'd our societies on both sides of the Atlantic one is the process of

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Finance financialization which created a huge wedge between capital and labor it

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created a new form of capital financial ice capital that essentially depleted

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the energy of both labor and in depth and he's inexorable financialization Dr

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headed comeuppance in 2008 @ ever since you remember after 1991 socialism died

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with the collapse of the Soviet Union and then after 2008 capitals date we

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have a new regime now I gotta go bankrupt accuracy its rule by the bank

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the banks the more bankrupt the bank the greatest capacity to mobilize and you

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see economic grants comic value from the rest of society and that's the problem

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with Bank of democracy the fact that for six years now we have a cynical massive

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transfer of wealth of income of value from production towards the financial

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eyes financial sector that the remains insolvent in reality despite this

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synagogue the problem with it is that it is created two things firstly

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deflationary forces ask anyone working in a sentimental switzerland today or in

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the Buddhist monk

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on the European Central Bank the Bank of Japan the Bank of England or the Fed

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becomes sleep at night because of the the fact that about half of the global

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economy now is languishing in negative interest rate that this is a reflection

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of the collapse of the Social Democratic New Deal bargain contract if you want

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of the twentieth century and that collapse happened in 2008 the world

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after 2008 cannot be understood anymore in terms of made sense before 2008 just

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like the world after 1929 would not be made sense off in terms that make sense

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in the Gold Exchange standard era but I had a 1929 the second reason with the

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deflationary process we have now the first blank of the social democratic

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tradition is that in the water because the working class can no longer insuring

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it

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stagnant wages the fact that youngsters are caught up in a dual labor market and

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they find it very difficult about Switzerland of course now but I'm

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talking about the rest of the developed world so easily successful only because

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it's only one of them and nobody else can be like but that's another

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discussion the fact remains that the first black the usual as amongst wage

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laborers is simply not possible because wage wages have stagnated such an extent

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that it is impossible for the wedding last in shorts and a second plant blank

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the redistribution between capital and labor is becoming increasingly

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impossible for two reasons first the politics that has become quite toxic

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just look at what's happening the negotiations between Greece and the

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troika within the European Union at the moment in the United States where you've

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got a congress be doing at the white house in a white house redoing the

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congress this distribution between capital and labor that was part and

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parcel of the new deal in social democracy

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required political governance Europe and the United States around governor as we

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speak at the leak completely on government and so that's the first that

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the second half way has to do this is nothing new I'm sure has been discussed

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their everyday a glimpse of this discussion

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let me put it very bluntly in science fiction terms their eyes of the machines

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artificial intelligence will consume very very soon is already doing it all

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the repetitive routine work or algorithmic work is going to be replaced

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especially the moment machines pass the Turing test and it is impossible for you

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and I do understand when we speak to some of the other phone where they were

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speaking to him sooner or to human person once we have that women have a

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massive displacement effect which for the first time in human history is going

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to overwhelm the creation of more job destruction than job creation remember