2019-11-23 08:33:00 Sat ET
technology social safety nets education infrastructure health insurance health care medical care medication vaccine social security pension deposit insurance
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.
2022-11-30 09:26:00 Wednesday ET

Climate change and ESG woke capitalism In recent times, the Biden administration has signed into law a $375 billion program to better balance the economi
2023-06-07 10:27:00 Wednesday ET

Anat Admati and Martin Hellwig raise broad critical issues about bank capital regulation and asset market stabilization. Anat Admati and Martin Hellwig (
2023-06-14 10:26:00 Wednesday ET

Daron Acemoglu and James Robinson show that good inclusive institutions contribute to better long-run economic growth. Daron Acemoglu and James Robinson
2023-05-21 12:26:00 Sunday ET

Amy Chua and Jed Rubenfeld suggest that relatively successful ethnic groups exhibit common cultural traits in America. Amy Chua and Jed Rubenfeld (2015)
2018-03-03 11:37:00 Saturday ET

President Xi seeks Chinese congressional approval and constitutional amendment for abolishing his term limits of strongman rule with more favorable trade de
2018-12-18 10:38:00 Tuesday ET

President Trump threatens to shut down the U.S. government in 2019 if Democrats refuse to help approve $5 billion public finance for the southern border wal