I've Been Thinking… On the Future of Capitalism

Since the pandemic, we've witnessed concrete shifts in how capitalism operates: central banks deploying unprecedented monetary policy, supply chains restructuring around resilience rather than pure efficiency, and trillion‑dollar infrastructure bills becoming politically feasible. This isn't collapse or revolution — it's evolution. The scaffolding of the last 40 years is being quietly disassembled and rebuilt.

Capitalism, like democracy, communism, or socialism, is not divine law. It's a human experiment — a framework we designed to organize economic life. We sometimes forget that it's not eternal, nor inevitable. It is a system, and systems evolve.

The Moment That Changed My Life

In undergrad, I was a pre‑law and international relations + finance major at NYU. My dream was to work for the United Nations as a human rights lawyer. I wanted to fight for the vulnerable, to negotiate treaties, to shape the global commons.

One afternoon, in my investment banking class, professor Murphy — a man I'd already sparred with in a two‑hour debate about the very concept of interest rates (I had questioned the entire premise of interest rates, arguing they were essentially rent on unused resources—why should my idle lambs generate income simply by being lent out?)—welcomed an old friend as a guest speaker. His friend was Larry Fink. They used to work together at First Boston.

I didn't know then that this was the defining moment of my career.

Larry spoke not just about markets, but about the potential for capitalism to be a force for good — for markets to lift people out of poverty, to finance solutions to climate change, to build bridges and hospitals and broadband networks.

Something shifted. I realized that the same global architecture I had been preparing to work around — through diplomacy and policy — could also be reshaped from within. The very capital flows that move across borders every day are among the most powerful forces in our world. And if harnessed responsibly, they could serve the same mission I cared about: human flourishing.

That's when I decided to join finance. Eventually, that choice led me to BlackRock for a decade — and away from the UN. I traded one global platform for another. Eight years ago, I moved from New York City to London, the birthplace of modern capitalism, to be part of its next evolution — learning from within and contributing to its future design. This is my latest thinking on where we stand.

Larry Fink's 2025 Letter: A Candid Diagnosis

This year, in his annual letter, Larry Fink said:

“Capitalism did work — just for too few people. Today, many countries have twin, inverted economies: one where wealth builds on wealth; another where hardship builds on hardship… The solution isn’t to abandon markets; it’s to expand them.”
— Larry Fink, 2025 Annual Chairman’s Letter (source)

In other words: globalization and capital markets lifted billions out of absolute poverty — but also deepened inequality within developed nations.

His prescription for what I think of as Capitalism 2.0 includes:

• Democratize access to investment. Open up private markets and infrastructure investments to individuals, not just institutions — through tokenization (creating digital shares of physical assets like real estate or infrastructure projects) and new investment vehicles.
• Massive infrastructure renewal. Prepare for the age of AI, green energy, and digital systems — a $68 trillion investment opportunity by 2040.
• Modernize financial plumbing. Replace outdated systems like SWIFT with blockchain‑enabled settlement that can process transactions in minutes rather than days.
• Evolve the portfolio model. Move from the traditional 60/40 stock‑bond mix toward one that integrates more private market exposure.

These solutions are ambitious, but they raise critical questions about execution. Will tokenization actually democratize access, or simply create new forms of financial complexity that favor sophisticated investors? Can infrastructure spending of this magnitude avoid the rent‑seeking and inefficiencies that have plagued past public‑private partnerships? The vision is compelling, but the devil will be in the implementation details.

Capitalism in the Age of AI and Digital Currency

I agree with Fink that capitalism isn't “over.” But the model we've lived with since the 1980s is approaching a fundamental transition, driven by forces that are rewriting the system's basic architecture.

Consider what's already happening: AI algorithms at firms like Two Sigma and Renaissance Technologies can analyze satellite imagery to predict crop yields and trade commodities before human analysts even receive the data. JPMorgan's LOXM system executes equity trades by learning optimal timing patterns that would take human traders years to recognize. These aren't incremental improvements — they represent a shift toward markets where speed and data processing power, rather than human intuition and relationship‑building, increasingly determine outcomes.

Blockchain and tokenization, meanwhile, are beginning to fractionalize ownership in ways previously impossible. Real estate investment trusts have existed for decades, but platforms like RealT now allow investors to buy $50 stakes in specific rental properties. Similarly, companies are exploring tokenized infrastructure bonds that could let ordinary investors own pieces of specific wind farms or fiber‑optic networks.

Digital currencies — whether central bank digital currencies (CBDCs) or decentralized stablecoins — could alter the very mechanics of capital mobility, reducing transaction frictions and shifting the balance between central and private control of money. China's digital yuan pilots already demonstrate how programmable money could enable real‑time economic policy implementation.

The combination of these forces has the potential to decentralize power — or simply re‑concentrate it in new hands. Which way it goes will depend on design, governance, and access.

The Real Question: Who Gets to Participate?

If the next phase of capitalism is going to be more inclusive, it can't just be about better technology. It must be about better architecture:

• Who sets the rules for AI in markets? Currently, a handful of tech giants and quantitative hedge funds are writing the playbook.
• Who gets to own tokenized assets? If regulatory complexity makes these investments accessible only through expensive wealth‑management platforms, we've simply created digital exclusivity.
• Who benefits from the $68 trillion infrastructure build‑out? History suggests that without intentional design, the lion's share of returns will flow to existing capital holders.

If these answers skew toward the same players who dominate today, then Capitalism 2.0 will be just Capitalism 1.0 with shinier tools.

Questions for the Community

I want this to be a conversation, not a monologue. I'm genuinely curious how others see the transition we're living through:

• Can capitalism be redesigned to be more inclusive — or will it inevitably consolidate power?
• Will AI and blockchain level the playing field, or create new, more complex hierarchies?
• If you could rewrite one rule of capitalism, what would it be?
• How should markets balance values and returns in the decades ahead?

Closing Thought...

The future of capitalism is not predetermined. It is, as it has always been, a design project. And every design choice — from interest‑rate policy to AI market governance — shapes the world we wake up in.

I left my dream of the UN to work in finance because I believed that shaping capital flows was one of the most powerful ways to influence the human story. I still believe that. But I also believe it will take more than capital to make capitalism a force for good in the next era. It will take intention, inclusion, and imagination.

The blueprint isn't finished. And maybe that's the best news we have.

Resources for further exploration

Foundational Reports & Letters

• Larry Fink’s Annual Chairman’s Letters (BlackRock)
  Candid assessments of capitalism’s challenges and direction from the world’s largest asset manager. A must-read for anyone tracking how global finance leaders envision the system’s future.

• TechDispatch - European Data A privacy-focused analysis of CBDCs and digital euro design from a regulatory perspective.

Academic Analyses & Books

• “The New Map: Energy, Climate, and the Clash of Nations” by Daniel Yergin
  A deep look at how infrastructure, energy, and geopolitics are shifting in the wake of new technologies and policy priorities.
• “Capitalism, Alone” by Branko Milanović
  An exploration of how global capitalism both promotes prosperity and generates inequality.
• Journal of Economic Perspectives – Symposium Issues
  Accessible, peer-reviewed overviews on market design, financial innovation, and institutional change.

On AI, Blockchain, and Digital Finance

• MIT Digital Currency Initiative
  Research on blockchain, digital currencies, and programmable money influencing global markets.
• Two Sigma Research & Insights
  White papers and technical deep-dives into AI, machine learning, and quantitative investment strategy.
• RealT Tokenized Real Estate Platform
  A live case study in fractionalizing real estate assets for investors and policymakers.

Policy & Governance Analysis

• OECD: The Future of Infrastructure
  Analyses and resources on public-private partnerships and infrastructure finance in a rapidly digitizing world.
• Peterson Institute: Working Papers on Capital Flows and Inclusion
  Research on financial regulation, cross-border capital, and ensuring inclusivity in global markets.

Platforms for Dialogue & Debate

• Project Syndicate: Capitalism Redefined Series
  Op-eds and essays from Nobel laureates, policymakers, and business leaders on the future of capitalism.
• Brookings Institution: Future of the Global Economy
  Policy briefs, events, and reports on the next phase of capitalism, AI governance, and inclusive growth.