894 Posts Found

No matter how many times we keep on saying the stock market is not the economy, people won’t believe it, but it isn’t. The stock market is about one piece of the economy — corporate profits — and it’s not even about the current or near-future level of corporate profits, it’s about corporate profits over a somewhat longish horizon.

Content: Quotation | Author: Paul Krugman | Source: Vox | Subject: Economics

Shifts in how businesses create value and how it flows to households highlight the changing role of the corporation.

Content: Article | Authors: Clarisse Magnin-Mallez, Michael Birshan, Sean Brown | Source: McKinsey Quarterly | Subjects: Economics, Social Responsibility (ESG)

The right is starry eyed about the market but coldly realistic about the limitations of government. The left is starry eyed about government but coldly realistic about the limitations of the market. As Churchill once said about democracy, it’s the worst possible system except for all the others. Both the market and the government are deeply flawed tools. But they are all we have.

Content: Quotation | Authors: Joan C. Williams, Ro Khanna | Source: Harvard Business Review | Subjects: Capitalism, Economics

We don’t need to reinvent capitalism. We just need to practice it. That means that corporations that embrace market mechanisms and decry government intervention in the good times should not change the rules when times turn tough. Privatizing profits while socializing risks isn’t capitalism: It’s rigged roulette. Equally important, practicing capitalism does not mean insisting on special treatment from government that benefits shareholders at the … [ Read more ]

Content: Quotation | Authors: Joan C. Williams, Ro Khanna | Source: Harvard Business Review | Subjects: Capitalism, Economics

Many studies show that women are as good as, or better than, men at being businesspeople, and they are more likely to reinvest their earnings in long-term assets like education, health care and housing for their families. Gender inequality is a steep tax on global prosperity.

Content: Quotation | Author: Randall Kempner | Subjects: Economics, Women in Business

With the proper safeguards, creative destruction – the process by which the new replaces the old – remains the way to greater economic growth and prosperity.

Content: Article | Authors: Isabelle Laporte, Philippe Aghion | Source: INSEAD Knowledge | Subjects: Capitalism, Economics

[Milton] Friedman ignored that in a democratic-capitalist society, democracy must come first. “We, the people” grant businesses their license to operate — which they, in turn, must earn and renew.

Content: Quotation | Author: Darren Walker | Source: The New York Times | Subjects: Economics, Management

The shareholder-primacy view of the corporation — which gives little voice to the workers, customers and communities that are impacted by corporate decisions — has been the modus operandi of United States capitalism. Why did this view become so dominant? One rationale was a practical one. Rather than being asked to balance multiple, often conflicting, interests among stakeholders, the manager is given a simple objective … [ Read more ]

Content: Quotation | Author: Marianne Bertrand | Source: The New York Times | Subjects: Economics, Management

Every business takes from the environment. We get access to resources, roads, infrastructure, and education. So it’s only right that we have a mind-set that we give back, we replenish as well as consume. And we use our voice to try to make a difference.

Content: Quotation | Author: Jeremy Darroch | Source: strategy+business | Subjects: Capitalism, Economics, Social Responsibility (ESG)

As governments craft policies to “build back better” following an economic crisis, they need indicators that reflect a meaningful conception of “better.” This doesn’t mean governments need to abandon the standard GDP. Rather they should transform it into a series of indicators — much like existing US statistics for unemployment are reported as “U1” through “U6,” with each number reflecting different aspects of unemployment. Other … [ Read more ]

Content: Article | Authors: Ben Beachy, Justin Talbot Zorn | Source: Harvard Business Review | Subject: Economics

In the current model of corporate capitalism, each company is treated as an economic island to be optimized individually. While this simplifies management and accountability, it masks the extent of economic and social interdependence between different stakeholders. In contrast, resilience is a property of systems: an individual company’s resilience means little if its supply base, customer base, or the social systems upon which it depends … [ Read more ]

Content: Quotation | Authors: Kevin Whitaker, Martin Reeves | Source: Harvard Business Review | Subjects: Capitalism, Economics, Management, Operations

Economists and policy makers are worried that the Vanguard model of passive investment is hurting markets.

Author: Annie Lowrey | Source: The Atlantic Monthly | Subject: Economics

American capitalism has evolved time and again, and we may be poised for another such shift. Will the future of capitalism involve tweaks, reforms, or wholesale change?

Content: Article | Authors: Gary Pinkus, James Manyika, Monique Tuin | Source: McKinsey Quarterly | Subjects: Capitalism, Economics

Big business has arguably become the most dominant force in many societies, subsuming the power of Church and State but not their responsibilities. As a result, the urgent human needs (for security, stability and spiritual nourishment) once met by those institutions must largely go begging.

Content: Quotation | Author: Benjamin Kessler | Source: INSEAD Knowledge | Subjects: Economics, Miscellaneous

A revolution is any change that alters the power structure. This [Fourth Industrial Revolution] is not a revolution. It’s a reformation, because it bolsters the existing power structure. The rhetoric of revolution is a cover-up.

Content: Quotation | Author: Gianpiero Petriglieri | Source: INSEAD Knowledge | Subject: Economics

Robin Greenwood and Samuel G. Hanson discuss new research that shows economic crises follow predictable patterns.

Content: Article | Authors: Danielle Kost, Robin Greenwood, Samuel G. Hanson | Source: Harvard Business School (HBS) Working Knowledge | Subject: Economics

Markets weed out inefficient practices, but only when no one has sufficient power to manipulate them.

Content: Quotation | Author: Ha-Joon Chang | Source: Four Minute Books | Subject: Economics

A man who works with his hands is a laborer. A man who works with his hands and his brains is a craftsman. A man who works with his hands, brains, and heart is an artist.

Content: Quotation | Author: Louis Nizer | Subject: Economics

In the presence of externalities, society’s interest in a market outcome extends beyond the well-being of buyers and sellers who participate in the market; it also includes the well-being of bystanders who are affected indirectly…. The market equilibrium is not efficient when there are externalities. That is, the equilibrium fails to maximize the total benefit to society as a whole.

Content: Quotation | Author: Gregory Mankiw | Source: Farnam Street | Subjects: Capitalism, Economics

In economics, things take longer to happen than you think they will, and then they happen faster than you thought they could.

Content: Quotation | Author: Rudiger Dornbusch | Subject: Economics