Understanding capitalism is in some ways simple. At its best, capitalism rewards creators, makers and providers: the people and firms that create valuable things for others, like imaginative technologies and good food, cars and drugs.

The City of London has never been known for understanding technology and has never matched Silicon Valley's tradition of knowledgeable investment in technology start-ups, just as the U.K. government has never matched the vast investment made by the U.S. government.

The wrongful arrest of tens of thousands of British Muslims after the September 11 attacks can be explained by the very poor intelligence the police had, and, just possibly, excused by the fact that a terrorist action in Britain linked to British Muslims would have been hugely damaging.

Societies can easily talk themselves into conflict and misery. But they can also talk, and act, their way out.