Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘capitalism’

Trust Funds for All

Posted by hkarner - 10. Juli 2020

Date: 09‑07‑2020

Source: Project Syndicate by Kemal Dervis

Kemal Dervis, a former minister of economic affairs of Turkey and administrator for the United Nations Development Program, is a senior fellow at the Brookings Institution. 

Sebastián Strauss is a senior research analyst and Coordinator for Strategic Engagements at the Brookings Institution. Follow him on Twitter. 

The COVID‑19 pandemic has exposed many flaws in advanced economies, not least the fact that inequality can be deadly. The case for giving all citizens a capital endowment – reflecting both their inalienable dignity and society’s return on its public investments – has never been stronger.

WASHINGTON, DC – It is far from certain whether the post‑pandemic recovery will be a lasting one that results in more sustainable and equitable economies. The temptation to try to return to the recent past is strong, and so are the vested interests favoring such a course.

But many now recognize that what the economist Branko Milanovic calls “liberal meritocratic capitalism” must change significantly in order to meet systemic challenges: not only climate change, but also increasing inequalities of income, wealth, wellbeing, and power – particularly in the United States. Extreme inequality and low intergenerational mobility pose an existential threat to market capitalism, and the recent mass protests in US cities against systemic racism have heightened the sense of urgency. Den Rest des Beitrags lesen »

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There is a glimmer of hope‘: economists on coronavirus and capitalism

Posted by hkarner - 11. Mai 2020

Date: 10‑05‑2020

Source: The Guardian Yanis Varoufakis and David McWilliams

Greece’s former finance minister Yanis Varoufakis and Irish economist David McWilliams on the hope for a global new deal

David McWilliams: I think it is fair to say that capitalism – in the course of this unprecedented crisis – has been suspended. We are not going back to where we were, to business as usual. The state has come back, and this episode will not be forgotten by the electorate. I don’t know where we are going, but one thing seems clear: we are not going back.

Yanis Varoufakis: I like this phrase: capitalism has been suspended. The last time capitalism was suspended in the west was during the second world war, with the advent of the war economy: a command economy that fixed prices. The war economy marked the transcendence of the standard capitalist model.

But what we see now is not so much the suspension of capitalism. The rules of capitalism may have been suspended – all those sacrosanct policies are gone, the neat separation of fiscal and monetary policy is gone, the idea that public debt is a bad thing is gone. Den Rest des Beitrags lesen »

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Capitalism’s Triple Crisis

Posted by hkarner - 30. März 2020

Mariana Mazzucato is Professor of Economics of Innovation and Public Value and Director of the UCL Institute for Innovation and Public Purpose (IIPP). She is the author of The Value of Everything: Making and Taking in the Global Economy, which was shortlisted for the Financial Times-McKinsey Business Book of the Year Award.

After the 2008 financial crisis, we learned the hard way what happens when governments flood the economy with unconditional liquidity, rather than laying the foundation for a sustainable and inclusive recovery. Now that an even more severe crisis is underway, we must not repeat the same mistake.

LONDON – Capitalism is facing at least three major crises. A pandemic-induced health crisis has rapidly ignited an economic crisiswith yet unknown consequences for financial stability, and all of this is playing out against the backdrop of a climate crisis that cannot be addressed by “business as usual.” Until just two months ago, the news media were full of frightening images of overwhelmed firefighters, not overwhelmed health-care providers.

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Making Stakeholder Capitalism a Reality

Posted by hkarner - 8. Januar 2020

Lenny Mendonca is Chief Economic and Business Adviser and Director of the California Office of Business and Economic Development.

The recent push by big business in favor of a more socially and environmentally conscious corporate-governance model is not just empty rhetoric. With the public losing trust in business and markets, it is now in everyone’s interest to reform the system so that it delivers prosperity for the many, rather than the few.

BERKELEY – For a half-century, American corporations (and many others around the world) have embraced shareholder primacy, which holds that the only responsibility of business is to maximize profits. But this principle is now being challenged by corporate leaders themselves, with the United States Business Roundtable announcing last year that it will adopt a stakeholder approach that focuses not just on shareholders but also on customers, employees, suppliers, and communities, all of which are deemed essential for business performance.

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Capitalism Isn’t a ‘System’

Posted by hkarner - 27. Dezember 2019

Date: 26‑12‑2019

Source: The Wall Street Journal By Barton Swaim

Socialists err dangerously when they assume a market economy is a conscious project.

Airy, abstract words are the currency of democratic politics. Conservatism, liberalism, nationalism, democracy, socialism—you have to use them, but they can easily gum up your thought. George Orwell famously objected to the haphazard use of “fascism,” and before him Samuel Taylor Coleridge complained bitterly that “Jacobin” has “either no meaning, or a very vague one: for definite terms are unmanageable things, and the passions of men do not readily gather round them.”

The ill‑defined word of the moment is “capitalism.” After Soviet communism fell, capitalism seemed to have won the argument. But anticapitalists didn’t concede. Maybe socialism and communism hadn’t worked as envisioned, they argued, but capitalism was still the corrosive, dehumanizing force it had always been. This viewpoint expressed itself in riots outside World Trade Organization conferences and also proposals for “participatory economy,” “eco‑communitarianism” and “postcapitalist” arrangements. Den Rest des Beitrags lesen »

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What Kind of Capitalism Do We Want?  

Posted by hkarner - 3. Dezember 2019

Date: 02‑12‑2019

Source: Project Syndicate by Klaus Schwab

Klaus Schwab is Founder and Executive Chairman of the World Economic Forum. 

Though the concept of „stakeholder capitalism“ has been around for a half‑century, it has only recently begun to gain traction against the prevailing shareholder‑primacy model of profit maximization. Now, advocates of a more socially conscious economic system must take steps to ensure that their vision takes hold for the long term.

GENEVA – What kind of capitalism do we want? That may be the defining question of our era. If we want to sustain our economic system for future generations, we must answer it correctly.

Generally speaking, we have three models to choose from. The first is “shareholder capitalism,” embraced by most Western corporations, which holds that a corporation’s primary goal should be to maximize its profits. The second model is “state capitalism,” which entrusts the government with setting the direction of the economy, and has risen to prominence in many emerging markets, not least China.

But, compared to these two options, the third has the most to recommend it. “Stakeholder capitalism,” a model I first proposed a half‑century ago, positions private corporations as trustees of society, and is clearly the best response to today’s social and environmental challenges. Den Rest des Beitrags lesen »

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A scholar of inequality ponders the future of capitalisma

Posted by hkarner - 4. November 2019

Date: 03-11-2019
Source: The Economist: Free exchange

Branko Milanovich’s new book asks whether it is liberal or illiberal

When communism fell, that was supposed to be that. History would continue, but arguments about how to organise society seemed to have been settled. Yet even as capitalism has strengthened its hold on the global economy, history’s verdict has come to seem less final. In a new book, “Capitalism, Alone”, Branko Milanovic of the Stone Centre on Socioeconomic Inequality at the City University of New York argues that this unification of humankind under a single social system lends support to the view of history as a march towards progress. But the belief that liberal capitalism will prove to be the destination has been weakened by financial and political dysfunction in the rich world, and by the rise of China. Its triumph cannot be taken for granted.

Mr Milanovic outlines a taxonomy of capitalisms and traces their evolution from classical capitalism before 1914, through the social-democratic capitalism of the mid-20th century, to “liberal meritocratic capitalism” in much of the rich world, in particular America. He contrasts this with the “political capitalism” found in many emerging countries, with China as the exemplar. These two capitalistic forms now dominate the global landscape. Their co-evolution will shape world history for decades to come. Den Rest des Beitrags lesen »

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How to Rethink Capitalism

Posted by hkarner - 2. Oktober 2019

Simon Johnson, a former chief economist of the IMF, is a professor at MIT Sloan, a senior fellow at the Peterson Institute for International Economics, and co-founder of a leading economics blog, The Baseline Scenario. He is the co-author, with Jonathan Gruber, of Jump-Starting America: How Breakthrough Science Can Revive Economic Growth and the American Dream.

The 2008 financial crisis, together with failed efforts to combat climate change and sharply rising inequality, has frayed the neoliberal consensus that has prevailed in the United States and much of the West for more than two generations. Three issues must be considered in weighing what comes next.

WASHINGTON, DC – The United States Business Roundtable, an organization of CEOs of large US companies, recently issued a statement that caused quite a stir in some circles. Rather than focusing primarily or exclusively on maximizing shareholder value, America’s corporate titans argued, companies should attach more weight to the wellbeing of their broader stakeholder community, including workers, customers, neighbors, and others. 

As CEOs of large companies are hired and fired mostly on the basis of their contributions to profits, such statements merit a certain amount of cynicism. Unless and until incentives created by financial markets change, we should expect the short-term profit motive to prevail.The Business Roundtable’s views are part of broader attempts to reimagine capitalism – the topic now of high-profile courses at Harvard Business School, Brown University, and elsewhere. In his recent book The Economists’ Hour, Binyamin Appelbaum, an influential New York Times journalist, argues that economists are to blame for tilting too much of the world excessively toward profits. Den Rest des Beitrags lesen »

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Is Stakeholder Capitalism Really Back?

Posted by hkarner - 29. August 2019

Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University and Chief Economist at the Roosevelt Institute. He is the author, most recently, of People, Power, and Profits: Progressive Capitalism for an Age of Discontent (W.W. Norton and Allen Lane).

We will have to wait and see whether the US Business Roundtable’s recent statement renouncing corporate governance based on shareholder primacy is merely a publicity stunt. If America’s most powerful CEOs really mean what they say, they will support sweeping legislative reforms.

NEW YORK – For four decades, the prevailing doctrine in the United States has been that corporations should maximize shareholder value – meaning profits and share prices – here and now, come what may, regardless of the consequences to workers, customers, suppliers, and communities. So the statement endorsing stakeholder capitalism, signed earlier this month by virtually all the members of the US Business Roundtable, has caused quite a stir. After all, these are the CEOs of America’s most powerful corporations, telling Americans and the world that business is about more than the bottom line. That is quite an about-face. Or is it?

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Demographic Decline and the End of Capitalism as We Know It

Posted by hkarner - 19. August 2019

Date: 16-08-2019
Source: Foreign Affairs By Zachary Karabell
Subject: The Population Bust

For most of human history, the world’s population grew so slowly that for most people alive, it would have felt static. Between the year 1 and 1700, the human population went from about 200 million to about 600 million; by 1800, it had barely hit one billion. Then, the population exploded, first in the United Kingdom and the United States, next in much of the rest of Europe, and eventually in Asia. By the late 1920s, it had hit two billion. It reached three billion around 1960 and then four billion around 1975. It has nearly doubled since then. There are now some 7.6 billion people living on the planet.

Just as much of the world has come to see rapid population growth as normal and expected, the trends are shifting again, this time into reverse. Most parts of the world are witnessing sharp and sudden contractions in either birthrates or absolute population. The only thing preventing the population in many countries from shrinking more quickly is that death rates are also falling, because people everywhere are living longer. These oscillations are not easy for any society to manage. “Rapid population acceleration and deceleration send shockwaves around the world wherever they occur and have shaped history in ways that are rarely appreciated,” the demographer Paul Morland writes in The Human Tide, his new history of demographics. Morland does not quite believe that “demography is destiny,” as the old adage mistakenly attributed to the French philosopher Auguste Comte would have it. Nor do Darrell Bricker and John Ibbitson, the authors of Empty Planet, a new book on the rapidly shifting demographics of the twenty-first century. But demographics are clearly part of destiny. If their role first in the rise of the West and now in the rise of the rest has been underappreciated, the potential consequences of plateauing and then shrinking populations in the decades ahead are almost wholly ignored.

The mismatch between expectations of a rapidly growing global population (and all the attendant effects on climate, capitalism, and geopolitics) and the reality of both slowing growth rates and absolute contraction is so great that it will pose a considerable threat in the decades ahead. Governments worldwide have evolved to meet the challenge of managing more people, not fewer and not older. Capitalism as a system is particularly vulnerable to a world of less population expansion; a significant portion of the economic growth that has driven capitalism over the past several centuries may have been simply a derivative of more people and younger people consuming more stuff. If the world ahead has fewer people, will there be any real economic growth? We are not only unprepared to answer that question; we are not even starting to ask it. Den Rest des Beitrags lesen »

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