Capitalism Seen in Crisis by Investors Citing Wide Inequalities

Jan. 25 (Bloomberg) -- International investors say capitalism is in crisis, with almost one in three backing radical changes to the system, according to a Bloomberg survey.

As the global financial and business elite gather in Davos for their annual forum, a majority in the Bloomberg Global Poll agree that income inequality hurts the economy and that governments need to do something to address it -- ideas at the heart of “Occupy” protests worldwide. Those surveyed also voice reservations about the financial industry’s role in society, with seven in 10 seeing at least some truth in the argument that banks have too much power over governments.

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The 459 U.S. investors who answered the survey view capitalism more favorably than their counterparts elsewhere, with roughly one in five saying the system needs an overhaul, according to the poll.

U.S. participants are also more wary of government action to tackle income disparities. Half say such official intervention would be inappropriate. More than three of four European investors and more than four in five Asians see a role for government in dealing with the issue.

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