MIT financial economist Simon Johnson rethinks capitalism with better key market incentives.

Daisy Harvey

2019-11-23 08:33:00 Sat ET

MIT financial economist Simon Johnson rethinks capitalism with better key market incentives. Johnson refers to the recent Business Roundtable CEO statement that focuses on better stakeholder value maximization for employees, customers, and suppliers. Johnson proposes 3 primary issues when we reconsider capitalism in response to the neoliberal consensus. First, market incentives are often positive in some contexts. It is not enough for entrepreneurs to raise capital to promote good social causes. Entrepreneurs often need to come up with a sustainable business model that promises steady future profits. Only profitable ventures survive the test of time, so founders and most senior executive managers often tend to fixate on near-term profitability.

Second, powerful policymakers and interest groups can distort sensible economic analysis to bolster the consensus view of business sustainability. It would be better for all parties to strike a delicate balance between public efforts and private motives. However, ulterior motives cannot align well with good causes.

Third, the private sector typically cannot take into account negative externalities.  In this light, the public sector may need to play an important role in advancing basic science for better health care, infrastructure, technology, and so on. On balance, this consideration helps enhance macro policy outcomes in light of climate change and economic inequality.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Apple CEO Tim Cook maintains a frugal low-key lifestyle.

Jonah Whanau

2019-10-11 13:40:00 Friday ET

Apple CEO Tim Cook maintains a frugal low-key lifestyle.

Apple CEO Tim Cook maintains a frugal low-key lifestyle. With $625 million public wealth, Cook leads the $1 trillion tech titan Apple in the post-Jobs era.

+See More

San Francisco Fed CEO Mary Daly suggests that trade escalation is not the only risk in the global economy.

Rose Prince

2019-06-19 09:27:00 Wednesday ET

San Francisco Fed CEO Mary Daly suggests that trade escalation is not the only risk in the global economy.

San Francisco Fed CEO Mary Daly suggests that trade escalation is not the only risk in the global economy. Due to the current Sino-U.S. trade tension, the g

+See More

Elizabeth Warren warns of Trump financial reforms that shake up the 5 key pillars of bank regulation.

Dan Rochefort

2017-11-19 08:37:00 Sunday ET

Elizabeth Warren warns of Trump financial reforms that shake up the 5 key pillars of bank regulation.

In 2000, a former law professor at Harvard proposed establishing the Financial Product Safety Commission in order to protect consumer rights in the provisio

+See More

Many eminent investors suggest that the time may be ripe for a major stock market correction.

Becky Berkman

2017-08-13 09:36:00 Sunday ET

Many eminent investors suggest that the time may be ripe for a major stock market correction.

Several investors and billionaires such as George Soros, Warren Buffett, Carl Icahn, and Howard Marks suggest that the time may be ripe for a major financia

+See More

AYA free finbuzz ebook *Trump economic reform* as of January 2019

Andy Yeh Alpha

2019-01-31 08:40:00 Thursday ET

AYA free finbuzz ebook *Trump economic reform* as of January 2019

We offer a free ebook on the latest stock market news, economic trends, and investment memes as of January 2019:  https://www.dropbox.com/s/4d8z

+See More

Top money managers George Soros and Warren Buffett reveal their current stock and bond positions.

Dan Rochefort

2018-05-10 07:37:00 Thursday ET

Top money managers George Soros and Warren Buffett reveal their current stock and bond positions.

Top money managers George Soros and Warren Buffett reveal their current stock and bond positions in their recent corporate disclosures as of mid-2018. Georg

+See More