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All the Money in the World by Peter W. Bernstein
Albert Einstein, anti-communist, Berlin Wall, Bill Gates: Altair 8800, call centre, corporate governance, corporate raider, creative destruction, currency peg, David Brooks, Donald Trump, estate planning, family office, financial innovation, George Gilder, high net worth, invisible hand, Irwin Jacobs: Qualcomm, Jeff Bezos, job automation, job-hopping, John Markoff, Long Term Capital Management, Marc Andreessen, Martin Wolf, Maui Hawaii, means of production, mega-rich, Menlo Park, Mikhail Gorbachev, new economy, Norman Mailer, PageRank, Peter Singer: altruism, pez dispenser, popular electronics, Renaissance Technologies, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, Sand Hill Road, school vouchers, Search for Extraterrestrial Intelligence, shareholder value, Silicon Valley, Silicon Valley startup, stem cell, Stephen Hawking, Steve Ballmer, Steve Jobs, Steve Wozniak, the new new thing, Thorstein Veblen, too big to fail, traveling salesman, urban planning, wealth creators, William Shockley: the traitorous eight, women in the workforce
Carl Icahn laughed loudest: Smith, The Wealth Creators, p. 108. Also see transcripts.cnn.com/TRANSCRIPTS/0008/18/mlld.00.htm. 31. Milken pleaded guilty: Stewart, Den of Thieves, pp. 511, 536, 519, 506–7. 32. By then, some major LBOs: Burrough and Helvar, Barbarians at the Gate, p. 513; Stewart, Den of Thieves, pp. 503–4. For West Point–Pepperell, see www.answers.com/topic/west-point-pepperell-inc. 33. But millions of small investors: Stewart, Den of Thieves, p. 500. 34. Modest and arrogant at once, Buffett: Information about Berkshire Hathaway’s revenues is drawn from the 2006 Fortune 500; www.money.cnn.com/magazines/fortune/fortune500/snapshots/194.htm. 35. “If I wanted to”: Vanessa Grigoriades, “Billionaires Are Free,” New York, Nov. 6, 2006. 36. He invested most of that float: Smith, The Wealth Creators, pp. 140–58. 37.
Wayne Huizenga (pronounced HIGH-zeng-a), a bald, stocky sixty-nine-year-old with eyes so steel blue a rival once described them as “piercing, right to the soul.”2 Huizenga, with an estimated net worth3 of $2.1 billion (more than twice the GDP of Monaco), was in town to address the annual Ernst & Young Entrepreneur of the Year World Summit, held that year in Monte Carlo’s Grimaldi Forum, a futuristic center built on the sea with expansive harbor views and named after the family that has reigned over the principality for more than seven hundred years. As winner of the 2005 World Entrepreneur Award4 and informal king of the conference, Huizenga was invited to deliver the keynote speech, “An Entrepreneurial Journey: The Story of Wayne Huizenga.” Even for Monte Carlo, the glitz level was high. In the audience was a pantheon of the world’s biggest wealth creators, more than one hundred entrepreneurs from nearly forty countries. It was all the more impressive, then, that Huizenga, a college dropout who started his business with one used garbage truck, was the man standing in front of them. Think of Forbes 400 members5 and what comes to mind are tycoons such as computer titan Michael Dell, America Online’s Steve Case, eBay’s Pierre Omidyar, and Qualcomm’s Irwin Jacobs—all former winners of Ernst & Young awards, all high-tech billionaires who made fortunes on flashy, brainy businesses.
* * * 1995 from the pages of Forbes Paul Mellon, the banker and scion of the Mellon family, donated half of the philosopher John Locke’s library to Oxford. (1995 net worth: $1.1 billion) Michael Dell of Dell Computers has no chair in his office: “I’ve discovered that I think faster on my feet.” (1995 net worth: $740 million) James LeVoy Sorenson, inventor and producer of cutting-edge medical devices, including the computerized heart monitor, believes that sign language will become a global second language. (1995 net worth: $1.2 billion) LBO king and Revlon boss Ronald Perelman smokes five cigars a day. (1995 net worth: $4.2 billion) * * * As wealth creators, both Murdoch and Redstone sit atop gangly empires of mostly old media and entertainment (Murdoch in newspapers, TV, movies, and book publishing; Redstone in TV, radio, publishing, and movies) and new media such as cable, with just a smattering of Internet assets. Murdoch’s News Corporation50 recently spent more for Internet portals and businesses such as MySpace ($580 million) than any entertainment conglomerate before it, as Murdoch declared that the explosion of video sharing, social networking, blogging, and downloading music and movies around the world is creating a historic watershed.
Why We Can't Afford the Rich by Andrew Sayer
accounting loophole / creative accounting, Albert Einstein, asset-backed security, banking crisis, banks create money, basic income, Bretton Woods, British Empire, call centre, capital controls, carbon footprint, collective bargaining, corporate raider, corporate social responsibility, creative destruction, credit crunch, Credit Default Swap, crony capitalism, David Graeber, David Ricardo: comparative advantage, debt deflation, decarbonisation, declining real wages, deglobalization, deindustrialization, delayed gratification, demand response, don't be evil, Double Irish / Dutch Sandwich, en.wikipedia.org, Etonian, financial innovation, financial intermediation, Fractional reserve banking, full employment, G4S, Goldman Sachs: Vampire Squid, high net worth, income inequality, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, Isaac Newton, James Dyson, job automation, Julian Assange, labour market flexibility, laissez-faire capitalism, land value tax, low skilled workers, Mark Zuckerberg, market fundamentalism, Martin Wolf, mass immigration, means of production, moral hazard, mortgage debt, negative equity, neoliberal agenda, new economy, New Urbanism, Northern Rock, Occupy movement, offshore financial centre, oil shale / tar sands, patent troll, payday loans, Philip Mirowski, Plutocrats, plutocrats, popular capitalism, predatory finance, price stability, pushing on a string, quantitative easing, race to the bottom, rent-seeking, Ronald Reagan, shareholder value, short selling, sovereign wealth fund, Steve Jobs, The Nature of the Firm, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, transfer pricing, trickle-down economics, universal basic income, unpaid internship, upwardly mobile, Washington Consensus, wealth creators, Winter of Discontent, working poor, Yom Kippur War, zero-sum game
Their carbon footprints are grotesquely inflated and many have an interest in continued fossil fuel production, threatening the planet. Of course, this brief summary leaves out many qualifications, not to mention the actual argument and evidence. Some readers may agree straightaway, some may have a few objections, but others may respond with incredulity, perhaps outrage, for to claim that we can’t afford the rich is to imply that they are a cost to the rest of us, a burden. Aren’t the rich wealth creators, job creators, entrepreneurs, investors – indeed, just the kind of people we need? Don’t entrepreneurs like Bill Gates deserve their wealth for having introduced products that benefit millions? Aren’t the rich entitled to spend what they have earned how they like? What right has anyone to say their consumption is excessive? Couldn’t the rich cut their carbon footprints by switching to low-carbon consumption?
• 46% of the world’s wealth is now owned by just 1% of the population. • The wealth of the richest 1% in the world amounts to $110 trillion. That’s 65 times the total wealth of the bottom half of the world’s population. • Seven out of ten people live in countries where economic inequality has increased in the last 30 years. Have the rich got richer because those at the top have become more enterprising, dynamic wealth creators? Are today’s capitalists – or entrepreneurs, as they like to call themselves – so much better at leading economic development than their more moderately paid predecessors of the post-war boom? The economic data suggests the opposite. Growth rates have been slower than in the post-war boom. The rich are clearly not taking the same share of faster growth, but an increasing share of slower growth.
And let’s remember that it’s not uncommon for employees who come up with inventions to find that they are effectively stolen from them by their employers, who then get the benefit.152 So, at best, two cheers for innovative working capitalists. ‘They’ll just go to another country and take their money with them …’ ‘… if we tax them too much, or otherwise restrict their power.’ This point is frequently wheeled out, as if the rich were major wealth creators, possessing rare powers, and therefore people whom we must do all we can to attract. British Conservative politician John Redwood’s defence of this belief is a common one: ‘The problem is the rich do not have to hang around if you seek to make them too poor. They have the best lawyers and accountants. They can go on strike when it comes to investing and developing businesses. They can go off shore.’153 This is right on all three counts: yes, there are no restrictions on them taking ‘their’ wealth elsewhere; yes, they can afford the best legal and financial servants; and yes, they can hold countries to ransom by refusing to invest.
Albert Einstein, barriers to entry, Bernie Madoff, collapse of Lehman Brothers, corporate governance, corporate social responsibility, creative destruction, credit crunch, Grace Hopper, happiness index / gross national happiness, high net worth, James Dyson, Jarndyce and Jarndyce, Jarndyce and Jarndyce, mass immigration, mittelstand, Network effects, North Sea oil, Northern Rock, patent troll, Plutocrats, plutocrats, Ponzi scheme, profit motive, Ralph Waldo Emerson, Silicon Valley, software patent, stealth mode startup, Steve Jobs, Steve Wozniak, The Wealth of Nations by Adam Smith, traveling salesman, tulip mania, Vilfredo Pareto, wealth creators
He was an ingenious tyrant, who charmed and bullied all those around him and made and lost a massive publishing fortune while stealing hundreds of millions from his firm’s pensioners. He really was evil; I imagine that perhaps Beelzebub himself reached out from the watery depths, plucked Maxwell from the deck of his yacht Lady Ghislaine and spirited him off to hell. For Captain Bob had surely sold his soul to the devil many years before. But the Bouncing Czech is not typical of the breed. Most wealth creators retain at least a veneer of civilized behaviour. Nevertheless, when cornered or roused to fury, they can be ruthless. In 1853, the shipping and railroad magnate Cornelius Vanderbilt wrote to two former business associates, Morgan and Garrison: ‘You have undertaken to cheat me. I won’t sue you, for the law is too slow. I’ll ruin you.’ He then proceeded to make good on his promise. The modern-day autocrats are surely the Russian oligarchs.
Perhaps a relaxed life is the right answer for some, but to me it would be deadly dull. Where is the stimulation in a safe career? I have rarely opted for the easy path if the alternative offered the possibility of something with more fireworks. To me, achieving something novel and bold is meaningful, and practising meditation isn’t. The economist Richard Layard, who puts himself forward as an authority on happiness, says public policy should demotivate wealth creators with higher taxation, because they exacerbate the race for status. But he also says we must eliminate high unemployment. And I suspect that these two objectives are intrinsically incompatible. Entrepreneurs, for all their rivalry and dissent, are the principal engines that can create jobs. Discouraging them will only make the problem of unemployment worse. A society is condemned to stagnate if it rejects material advancement, takes a degraded view of humankind as an exploiter and adopts a fatalistic perspective of our system.
Anyone who fights their way to the summit of that sort of organization must want to possess power. I think the game also identifies the ever-present dividing line between those who ply their trade in the private sector and those who work in the public or non-profit world. For the entrepreneur, money will be first or second; for those in the state sector it will surely be last. This reveals the materialism at the heart of every wealth-creator. But is that worse than the urge to control that so stimulates those who run the police, universities, hospitals, schools, government and army? At a recent dinner party I sat next to a fairly senior politician. I asked him the power/money/recognition question, and he unhesitatingly put ‘power’ in first place. I admired his straight talking, but wondered about the psychology of someone so compelled to take charge of others’ lives.
23andMe, Andy Kessler, bank run, barriers to entry, Berlin Wall, Bob Noyce, British Empire, business process, California gold rush, carbon footprint, Cass Sunstein, cloud computing, collateralized debt obligation, collective bargaining, commoditize, computer age, creative destruction, disintermediation, Douglas Engelbart, Eugene Fama: efficient market hypothesis, fiat currency, Firefox, Fractional reserve banking, George Gilder, Gordon Gekko, greed is good, income inequality, invisible hand, James Watt: steam engine, Jeff Bezos, job automation, Joseph Schumpeter, knowledge economy, knowledge worker, libertarian paternalism, low skilled workers, Mark Zuckerberg, McMansion, Netflix Prize, packet switching, personalized medicine, pets.com, prediction markets, pre–internet, profit motive, race to the bottom, Richard Thaler, risk tolerance, risk-adjusted returns, Silicon Valley, six sigma, Skype, social graph, Steve Jobs, The Wealth of Nations by Adam Smith, transcontinental railway, transfer pricing, wealth creators, Yogi Berra
All of this still means the Federal Reserve has to figure out exactly how much money to create to fill the bucket representing population growth and productivity—an almost impossible task. The Fed has few levers. Interest rates are sometimes used in order to try to create just the right amount of money, with the Fed looking at prices—consumer prices and producer prices—as a surrogate for the price level. Prices are everything. Even though lower costs of computers and cell phones and LCD TVs is a positive for the economy and a wealth creator as the productive uses of technology always create wealth, it is often interpreted as deflationary, or at least disinflationary, and perhaps as our techno-toys get cheaper, interest rates are cut to “stimulate” the economy. Sometimes, when too much money is created, it doesn’t show up in consumer or producer prices, but flows into the stock market, or housing, and it appears to everyone as new wealth.
I mean anyone hacking away, as a Free Radical, creating productivity that increases living standards and societal wealth. This is you. Be a hacker, not a slacker. You’ll be rewarded with wealth . . . and the personal satisfaction that what you did mattered, even if no one else sees it that way. It’s more important now than ever. There are government deficits as far as the eye can see, a sea of red ink. Debt is being laid on to distribute to Have-nots today. We need more Makes, more Hackers, more wealth creators. I know, you know, we all know that much of that productive wealth is going to be redistributed, but don’t let that discourage you. Redistribution takes many forms. Taxes and deficit spending are only the most blatant. Regulations favor the status quo and the political entrepreneur who has his hands in everyone’s pockets. Environmentalism preaches a no-growth society. The word sustainability almost begs you to think of a fixed pie being sliced into tiny pieces—a loud and clear “no progress so let’s redistribute” statement.
See Virtual pipe Piracy, of digital products Pirate Bay Political entrepreneurs becoming examples of failure of media moguls as operation of Sponges created by Prague Stock Exchange Prediction markets Prevailing wage laws Price, and horizontal integration Procter & Gamble Productivity defined jobs, eliminating with technology wealth accumulation with. See Productivity and wealth Productivity and wealth Creators of economic principles and efficiency and exceptionalism guaranteed profits and horizontal integration jobs, hierarchy of jobs, replacing with technology and money supply non-productive workers, types of workweek over time Profit as business driver. See also Productivity and wealth; Wealth defined and dropping costs and greed issue Project Natal Prosperity, negative effects of Qualcomm Raduchel, Bill Railroad workers, retired, as disability recipients Ramsey, Dave Reddit Retail industry, profits, rise of Retail Link Returns, highest, and sources of capital Ricardo, David Robber barons Rockefeller, John D.
The Trouble With Billionaires by Linda McQuaig
battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, British Empire, Build a better mousetrap, carried interest, collateralized debt obligation, computer age, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, Douglas Engelbart, Douglas Engelbart, employer provided health coverage, financial deregulation, fixed income, full employment, George Akerlof, Gini coefficient, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of the telephone, invention of the wheel, invisible hand, Isaac Newton, Jacquard loom, Jacquard loom, Joseph-Marie Jacquard, laissez-faire capitalism, land tenure, Mark Zuckerberg, market bubble, Martin Wolf, mega-rich, minimum wage unemployment, Mont Pelerin Society, Naomi Klein, neoliberal agenda, Northern Rock, offshore financial centre, Paul Samuelson, Plutocrats, plutocrats, Ponzi scheme, pre–internet, price mechanism, purchasing power parity, RAND corporation, rent-seeking, rising living standards, road to serfdom, Ronald Reagan, The Chicago School, The Spirit Level, The Wealth of Nations by Adam Smith, Tobin tax, too big to fail, trickle-down economics, Vanguard fund, very high income, wealth creators, women in the workforce
In an interview with the Sunday Times in November 2009, Blankfein steadfastly defended his company and himself, explaining that he was just a banker ‘doing God’s work’.1 The tax hike that raised the top income tax rate to 50 per cent earlier that year had led to similar threats of departure from members of the UK elite. Theatre impresario Sir Andrew Lloyd Webber had appealed to the public to reject what he characterized as a tax increase on those who create wealth: ‘The last thing we need is a Somali pirate-style raid on the few wealth creators who still dare to navigate Britain’s gale-force waters.’ Film star Sir Michael Caine echoed the outrage, threatening to leave Britain if taxes at the upper end went even 1 percentage point higher.2 In a sympathetic Telegraph article about Michael Caine’s tax complaints, journalist Iain Martin noted that Micahel Caine, the son of a charlady and a Billingsgate fish market porter, personified the rags-to-riches success that the government should be trying to encourage.
The rising wealth and power of the corporate elite has allowed it to reshape public discourse, and to influence popular attitudes about the economy and government. Through its well-funded think-tanks and media empires as well as its increasing influence within universities, the elite has managed to establish the ideology of neoliberalism as the dominant paradigm. This has led to the celebration of the rich as ‘wealth creators’ whose goodwill must be constantly cultivated, lest they be discouraged from investing. The central theme of this ideology has been the need to free up (so-called) market forces from the controlling hand of government. This has boiled down to a simple notion – government bad, private sector good – that has become the mantra of our times, and the guiding force in reshaping public policy. This new ideology has had an enormous impact on the political battle over climate change.
Altogether, Posner suggests that the relationship between the CEO, the members of the board of directors and the firm’s auditors typically involves a great deal of ‘mutual back-scratching’.9 Of course, the cosy nature of corporate boards is nothing new. But in the early postwar years, social disapproval of excessive greed acted as something of a restraint. With that disapproval largely set aside in recent decades – indeed replaced with a culture that reveres ‘wealth creators’ – there’s been nothing to discourage corporate boards from indulging themselves. The problem has been compounded by the tendency of corporate boards to match what other corporate boards are doing. ‘We pay our executives not on the basis of performance, but on the basis of peer group,’ notes John C. Bogle, former chairman of the Vanguard Group. Bogle says that this creates a ‘ghastly ratchet effect’ as cosy corporate boards bring up the pay of their CEOs to match what’s going on at other similarly cosy boards.10 The cosy nature of corporate boards goes a long way towards explaining how executive compensation has climbed skyward – in an era of often lacklustre corporate performance.
anti-communist, battle of ideas, business climate, corporate governance, en.wikipedia.org, full employment, income inequality, invisible hand, liquidationism / Banker’s doctrine / the Treasury view, minimum wage unemployment, Mont Pelerin Society, new economy, old-boy network, popular capitalism, Powell Memorandum, price mechanism, profit motive, Ralph Nader, rent control, risk/return, road to serfdom, Ronald Reagan, school vouchers, shareholder value, spread of share-ownership, structural adjustment programs, The Chicago School, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, Torches of Freedom, trade liberalization, traveling salesman, trickle-down economics, Upton Sinclair, Washington Consensus, wealth creators, young professional
The aim of business propaganda in the schools is to persuade young people that it FIDDLING WITH KIDDY MINDS 225 is in their interests to eschew their own power as workers and citizens, and forgo their democratic power to restrain and regulate business activity. This deprives them of the ability to protect and ﬁght for their self-interest. NOTES 1 National Council on Economic Education, ‘Economic Literacy’, Business Week Special Advertising Section, 1999, www.businessweek.com/adsections/education/ econlit/econhome.htm. 2 Michael J. Caslin, ‘Where Will Our Next Generation of Entrepreneurs, Our Next Generation of National Wealth Creators and Manufacturers Come From? A Call to Action for the Development of an Entrepreneurial Culture for All Americans’, New York, National Foundation for Teaching Entrepreneurship (NFTE), 2 June 2004, p13. 3 National Council on Economic Education, ‘About NCEE: Campaign for Economic Literacy’, National Council on Economic Education, www.ncee.net/cel/ accessed 25 July 2004. 4 Ibid.; National Council on Economic Education, ‘National Council on Economic Education’, www.nationalcouncil.org/ accessed 1 June 1998; National Council on Economic Education, ‘About NCEE’. 5 National Council on Economic Education, ‘About NCEE’; National Council on Economic Education, ‘Afﬁliated Councils & Centers’, National Council on Economic Education, www.ncee.net/network/network.php accessed 25 July 2004; Economics America, ‘Economics America’, www.economicsamerica.org/schools.html accessed 1 June 1998. 6 National Council on Economic Education, ‘Economics International’, National Council on Economic Education, www.ncee.net/ei/ accessed 25 July 2004; National Council on Economic Education, ‘National Council on Economic Education’. 7 NFTE UK, ‘Network for Teaching Entrepreneurship’, NFTE UK, www.nfte.co.uk/ accessed 25 September 2005. 8 Junior Achievement, ‘Junior Achievement International’, Junior Achievement, www. jaintl.org/home.asp accessed 25 July 2004. 9 Junior Achievement, ‘Who We Are: Our Mission’, Junior Achievement, www.ja.org/ about/about_who.shtml accessed 25 July 2004. 10 Junior Achievement, ‘Contributors: Who Contributes?’
Junior Achievement, www. ja.org/involved/involved_contrib_who.shtml accessed 25 July 2004. 11 Junior Achievement, ‘JA Programs’, Junior Achievement, www.ja.org/programs/ programs.shtml accessed 25 July 2004. 12 Young Achievement Australia, ‘YAA: Young Achievement Australia’, Young Achievement Australia, www.yaa.org.au accessed 25 July 2004. 13 Young Enterprise, ‘Young Enterprise, United Kingdom’, Young Enterprise, www. young-enterprise.org.uk/ accessed 26 September 2005; Young Enterprise, ‘Primary Programme’, Young Enterprise, United Kingdom, www.young-enterprise.org.uk/ programmes/primary.asp accessed 26 September 2005. 226 FREE MARKET MISSIONARIES 14 Young Enterprise, ‘Project Business’, Young Enterprise, United Kingdom, www. young-enterprise.org.uk/programmes/pb.asp accessed 26 September 2005. 15 NFTE, ‘NFTE – Teaching Entrepreneurship to Youth’, National Foundation for Teaching Entrepreneurship, www.nfte.com/ accessed 25 September 2005. 16 Ibid.; NFTE UK, ‘Network for Teaching Entrepreneurship’. 17 Caslin, ‘Where Will Our Next Generation of Entrepreneurs, Our Next Generation of National Wealth Creators and Manufacturers Come From? A Call to Action for the Development of an Entrepreneurial Culture for All Americans’, p22. 18 ABW, ABW News, Spring, 2002, www.abw.org.au/pdf/newsletter/2002_Spring. pdf; ABW, ‘ABW Enterprise Education’, Australian Business Week, www.abw.org.au accessed 24 September 2005. 19 ABW, ‘ABW Enterprise Education’. 20 Ibid. 21 Jim Cumming, ‘National Education Agenda 1997–8’, Australian Principals Association’s Professional Development Council, August, 1997, ww3.beecoswebengine.org/ servlet/Web?
Carrier (ed) Meanings of the Market: The Free Market in Western Culture, Oxford University Press, New York, pp1–67 Carroll, J. (1992) ‘Economic Rationalism and Its Consequences’, in J. Carroll and R. Manne (eds) Shutdown: The Failure of Economic Rationalism and How to Rescue Australia, The Text Publishing Company, Melbourne, pp7–26 Carter, H. T. (1991) ‘The Myth of Shareholder Democracy’, Management Accounting, vol 72, no 11, p20 Caslin, M. J. (2004) ‘Where Will Our Next Generation of Entrepreneurs, Our Next Generation of National Wealth Creators and Manufacturers Come From? A Call to Action for the Development of an Entrepreneurial Culture for All Americans’, National Foundation for Teaching Entrepreneurship (NFTE), New York, 2 June, www.nfte. com/downloads/publicpolicy_06022004.pdf Castles, F. G., Gerritsen, R. and Vowles, J. (eds) (1996) The Great Experiment: Labour Parties and Public Policy Transformation in Australia and New Zealand, Allen & Unwin, Sydney Catley, B. (1996) Globalising Australian Capitalism, Cambridge University Press, Cambridge Cellier, F.
How to Speak Money: What the Money People Say--And What It Really Means by John Lanchester
asset allocation, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, blood diamonds, Bretton Woods, BRICs, Capital in the Twenty-First Century by Thomas Piketty, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collective bargaining, commoditize, creative destruction, credit crunch, Credit Default Swap, crony capitalism, Dava Sobel, David Graeber, disintermediation, double entry bookkeeping, en.wikipedia.org, estate planning, financial innovation, Flash crash, forward guidance, Gini coefficient, global reserve currency, high net worth, High speed trading, hindsight bias, income inequality, inflation targeting, interest rate swap, Isaac Newton, Jaron Lanier, joint-stock company, joint-stock limited liability company, Kodak vs Instagram, liquidity trap, London Interbank Offered Rate, London Whale, loss aversion, margin call, McJob, means of production, microcredit, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, negative equity, neoliberal agenda, New Urbanism, Nick Leeson, Nikolai Kondratiev, Nixon shock, Northern Rock, offshore financial centre, oil shock, open economy, paradox of thrift, Plutocrats, plutocrats, Ponzi scheme, purchasing power parity, pushing on a string, quantitative easing, random walk, rent-seeking, reserve currency, Richard Feynman, Richard Feynman, Right to Buy, road to serfdom, Ronald Reagan, Satoshi Nakamoto, security theater, shareholder value, Silicon Valley, six sigma, South Sea Bubble, sovereign wealth fund, Steve Jobs, survivorship bias, The Chicago School, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, trickle-down economics, Washington Consensus, wealth creators, working poor, yield curve
It involves policies that are designed to favor business, entrepreneurship, and the individual; to reduce the role of the state; to cut public spending; to increase the individual’s possibilities and responsibilities, both for success and for failure; to promote free trade, and accordingly to eliminate protectionist barriers and tariffs; to reduce the roles of unions and collective bargaining; to minimize taxes; to pursue policies that encourage wealth creators and to trust in the process whereby that wealth trickles down to other sectors of the economy; to move enterprises from public to private ownership. In the background of these specific policies are philosophical positions that are concerned, in the final analysis, with the role and importance of the individual. Neoliberalism sees the route to the greater collective good in the empowerment of the individual.
If society as a whole benefits and prospers, so much the better, but the moral and practical focus of any society should be on the individual. It follows from this that the individual’s potential is central to how the society, and following on from that an economy, should be structured. The economy should be arranged to allow individuals to maximize their potential. The practical promise made is that if you get government out of the way of wealth creators, the wealth they create will ultimately benefit everybody: the rich pay a lot more tax than the poor, for a start, and they spend a lot more money than the poor too, and both taxes and the money spent benefit the whole society. So it’s like a magic trick: you benefit the collective good by allowing people to selfishly maximize their own gains. What follows from this are policies that allow the rich to get richer quicker than the poor.
It was defeated—but more than a third of the population voted for it, and this was the second Swiss referendum in 2013 on the subject of executive pay. Just for reference, across the 500 biggest companies in America, the current multiple is that CEOs are paid 204 times more than their average employee.88 In the cheap seats, we’re often told that though people are increasingly furious about rising inequality, the most important thing is not to scare the “wealth creators,” because if we do, they’ll all move to places like London and Switzerland. But hang on: London and Switzerland are starting to have the same sorts of conversations that are happening in the USA. So where then would they go? The answer, I suspect, is that most of them wouldn’t go anywhere. A few bankers might head off to places like Singapore and Hong Kong, but that certainly wouldn’t be the end of life as we know it.
Walk Away by Douglas E. French
Elliott wave, forensic accounting, full employment, Home mortgage interest deduction, loss aversion, McMansion, mental accounting, mortgage debt, mortgage tax deduction, negative equity, New Journalism, Own Your Own Home, Richard Thaler, Robert Shiller, Robert Shiller, the market place, transaction costs, unbiased observer, wealth creators
After all the home would build equity by itself, whether there was a mortgage on it or not and besides the money used to pay down the mortgage could be invested to earn much higher returns than the tax advantaged interest rate being paid on the mortgage. The authors of Untapped Riches: Never Pay Off Your Mortgage—and Other Surprising Secrets for Building Wealth, Susan and Anthony Cutaia with Robert Slater claimed in their 2007 book that the fixed-rate mortgage was the worst mortgage in history. The Cutaias claimed certain types of mortgages were wealth creators. Mortgages like Option ARMs, Cash Flow ARMS, and negative amortization loans were best because these loans were “smart debt” which freed up cash so borrowers could leverage their homes to create wealth. They also advocated interest-only loans. To their credit, the husband and wife team cautioned readers not to fritter away their cash on boats and vacations. But, the adjustments on these adjustable rate mortgages are what set the housing crash in motion.
Amazon Mechanical Turk, Any sufficiently advanced technology is indistinguishable from magic, autonomous vehicles, business process, call centre, combinatorial explosion, corporate governance, creative destruction, crowdsourcing, David Ricardo: comparative advantage, easy for humans, difficult for computers, Erik Brynjolfsson, factory automation, first square of the chessboard, first square of the chessboard / second half of the chessboard, Frank Levy and Richard Murnane: The New Division of Labor, hiring and firing, income inequality, intangible asset, job automation, John Markoff, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Khan Academy, Kickstarter, knowledge worker, labour mobility, Loebner Prize, low skilled workers, minimum wage unemployment, patent troll, pattern recognition, Paul Samuelson, Ray Kurzweil, rising living standards, Robert Gordon, self-driving car, shareholder value, Skype, too big to fail, Turing test, Tyler Cowen: Great Stagnation, Watson beat the top human players on Jeopardy!, wealth creators, winner-take-all economy, zero-sum game
These involve accelerating organizational innovation and human capital creation to keep pace with technology. There are at least 19 specific steps we can take to these ends. Education 1. Invest in education. Start by simply paying teachers more so that more of the best and the brightest sign up for this profession, as they do in many other nations. American teachers make 40% less than the average college graduate. Teachers are some of America’s most important wealth creators. Increasing the quantity and quality of skilled labor provides a double win by boosting economic growth and reducing income inequality. 2. Hold teachers accountable for performance by, for example, eliminating tenure. This should be part of the bargain for higher pay. 3. Separate student instruction from testing and certification. Focus schooling more on verifiable outcomes and measurable performance and less on signaling time, effort or prestige. 4.
The Establishment: And How They Get Away With It by Owen Jones
anti-communist, Asian financial crisis, bank run, battle of ideas, Big bang: deregulation of the City of London, bonus culture, Bretton Woods, British Empire, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, centre right, citizen journalism, collapse of Lehman Brothers, collective bargaining, don't be evil, Edward Snowden, Etonian, eurozone crisis, falling living standards, Francis Fukuyama: the end of history, full employment, G4S, glass ceiling, hiring and firing, housing crisis, inflation targeting, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, James Dyson, laissez-faire capitalism, light touch regulation, market fundamentalism, mass immigration, Monroe Doctrine, Mont Pelerin Society, moral hazard, Neil Kinnock, night-watchman state, Northern Rock, Occupy movement, offshore financial centre, old-boy network, open borders, Plutocrats, plutocrats, popular capitalism, profit motive, quantitative easing, race to the bottom, rent control, road to serfdom, Ronald Reagan, shareholder value, short selling, sovereign wealth fund, stakhanovite, statistical model, The Wealth of Nations by Adam Smith, transfer pricing, union organizing, unpaid internship, Washington Consensus, wealth creators, Winter of Discontent
It is reminiscent of the ‘night-watchman state’, a term coined by the nineteenth-century German socialist Ferdinand Lassalle to describe the vision of his own laissez-faire contemporaries: a state with the most limited of functions. Despite shades of moderation and radicalism, the British Establishment’s governing ideology is consistent. The state is a bad thing, and gets in the way of entrepreneurial flair. Free markets are responsible for growth and progress. Businesspeople are the real wealth creators. It is a sentiment echoed by elite politicians of all stripes. When Nick Clegg became leader of the Liberal Democrats in 2007, months before the financial crash, he pledged to ‘define a liberal alternative to the discredited politics of big government’. Elsewhere, he assailed ‘nationalised education, nationalised health, and nationalised welfare: run by inflexible, centralised monopolies’. Tory leader David Cameron, meanwhile, defended free markets as the ‘best imaginable force for improving human wealth and happiness’, arguing that ‘open markets and free enterprise can actually promote morality’, and called for reform that ‘ends the state’s monopoly over public services’.
Support for the great privatization crusade may be received wisdom among Establishment politicians, journalists and think tanks – but it has never won the hearts and minds of the British people. Big business is more than happy to take from the vast wealth and resources of the state, but it is far more reluctant to give. The Establishment ideology that the state is somehow illegitimate, an obstacle to the entrepreneurial flair of the ‘wealth creators’, justifies not providing it with the revenue it needs to function. Even at a time of austerity shredding through services and livelihoods, large swathes of Britain’s wealthy elite have effectively ceased to pay their taxes. It is a practice that exposes just who the British state serves. s 6 Tycoons and Tax-Dodgers If modern British capitalism wanted a public ambassador, Steve Varley would be a pretty good bet.
When Gordon Brown introduced the new tax, the media – run by the sorts of people who could be affected by it – portrayed it as some sort of attack on the middle class. ‘A Savage and Pointless Attack on Middle England’ ran a headline in the Daily Telegraph, which was odd given the median British salary was £21,000, or over seven times lower than the threshold for the 50p tax. The Daily Mail damned a return to ‘the politics of envy’, while the Sun damned the tax as ‘an assault on wealth creators’. It is an argument also based on the assumption that those who make it into the wealthy elite have got there simply through skill and determination – so why should they be penalized for being gifted and for grafting? Some entrepreneurs are honest about how much they rely on other people, and on chance. ‘I think the cult of the founder or entrepreneur is a bit of a dangerous one,’ Martha Lane Fox says candidly.
Culture & Empire: Digital Revolution by Pieter Hintjens
4chan, airport security, anti-communist, anti-pattern, barriers to entry, Bill Duvall, bitcoin, blockchain, business climate, business intelligence, business process, Chelsea Manning, clean water, commoditize, congestion charging, Corn Laws, correlation does not imply causation, cryptocurrency, Debian, Edward Snowden, failed state, financial independence, Firefox, full text search, German hyperinflation, global village, GnuPG, Google Chrome, greed is good, Hernando de Soto, hiring and firing, informal economy, intangible asset, invisible hand, James Watt: steam engine, Jeff Rulifson, Julian Assange, Kickstarter, M-Pesa, mass immigration, mass incarceration, mega-rich, mutually assured destruction, Naomi Klein, national security letter, new economy, New Urbanism, Occupy movement, offshore financial centre, packet switching, patent troll, peak oil, pre–internet, private military company, race to the bottom, rent-seeking, reserve currency, RFC: Request For Comment, Richard Feynman, Richard Feynman, Richard Stallman, Satoshi Nakamoto, security theater, selection bias, Skype, slashdot, software patent, spectrum auction, Steve Crocker, Steve Jobs, Steven Pinker, Stuxnet, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, trade route, transaction costs, union organizing, wealth creators, web application, WikiLeaks, Y2K, zero day, Zipf's Law
US worship of strong private property rights beats slavery, yet is barely better than Soviet-era central planning. If the proof of the pudding is in the eating, the right-wing economists are chewing on something cold and rubbery. The blind worship of strong private property rights has allowed many abuses. Broadly, it is an excuse for the rich and powerful to steal public assets and then claim they are the "wealth creators." It has been the plank for many a coup, invasion, and even genocide on grounds to stop "socialist" regimes and their "mad" policies. It blessed the "greed is good" mantra that eviscerated business ethics in the last decades. It protects the patent system from scrutiny and gives it space to grow. It is the curtain that hides the malevolence of the Para-state. And it is fundamentally and powerfully wrong.
Observe the Internet -- the largest and most effective global infrastructure ever built -- constructed as millions of private properties built on public assets (its standards and technologies). In fact, an efficient free market absolutely depends on public assets. If you privatize the playing field, the owner will tilt it in his favor. All law is an answer to a set of problems. Stronger private property law is a brilliant, rational answer to the wrong problem: how to encourage individual investment and how to allow the wealth creators to escape the shackles of a parasitic society. The actual problem is: how to protect real investments from cheats (both the skinny beggars and the fat bandits). As I showed in the story of sub-Saharan Africa, endemic poverty comes from distant, fragmented, and unfair markets. No stronger property laws will open more ports, move Africa closer to Europe, or break the grip of the criminal elites and their foreign allies.
Conscious Capitalism, With a New Preface by the Authors: Liberating the Heroic Spirit of Business by John Mackey, Rajendra Sisodia, Bill George
Berlin Wall, Buckminster Fuller, business process, carbon footprint, collective bargaining, corporate governance, corporate social responsibility, creative destruction, crony capitalism, cross-subsidies, en.wikipedia.org, Everything should be made as simple as possible, Fall of the Berlin Wall, fear of failure, Flynn Effect, income per capita, invisible hand, Jeff Bezos, job satisfaction, lone genius, Mahatma Gandhi, microcredit, Occupy movement, profit maximization, Ralph Waldo Emerson, shareholder value, six sigma, Steve Jobs, Steven Pinker, The Fortune at the Bottom of the Pyramid, The Wealth of Nations by Adam Smith, too big to fail, union organizing, wealth creators, women in the workforce, zero-sum game
Raj Sisodia CONTENTS Foreword: Getting Capitalism Back on Track, by Bill George Preface to the Paperback Introduction: Awakenings 1 Capitalism: Marvelous, Misunderstood, Maligned 2 Conscious Capitalism and the Heroic Spirit of Business PART ONE The First Tenet: Higher Purpose 3 Purpose: The Corporation’s Search for Meaning 4 Discovering and Growing Purpose PART TWO The Second Tenet: Stakeholder Integration 5 Loyal, Trusting Customers 6 Passionate, Inspired Team Members 7 Patient, Purposeful Investors 8 Collaborative, Innovative Suppliers 9 Flourishing, Welcoming Communities 10 A Healthy, Vibrant Environment 11 The Outer Circle of Stakeholders 12 The Interdependence of Stakeholders PART THREE The Third Tenet: Conscious Leadership 13 The Qualities of Conscious Leaders 14 Becoming a Conscious Leader PART FOUR The Fourth Tenet: Conscious Culture and Management 15 Conscious Cultures 16 Conscious Management 17 Becoming a Conscious Business 18 The Power and Beauty of Conscious Capitalism The Conscious Capitalism Credo Appendix A: The Business Case for Conscious Capitalism Appendix B: Conscious Capitalism and Related Ideas Appendix C: Misconceptions About Conscious Capitalism Notes Acknowledgments About the Authors FOREWORD Getting Capitalism Back on Track This is the book I always wanted to write. As a committed capitalist, I worry a great deal to see how capitalism has gone off the rails the past quarter century and acquired such a bad name, much of it deserved. In this book, John Mackey and Raj Sisodia return capitalism to its roots. They make a compelling case for capitalism as the greatest wealth creator the world has ever known. In these pages, they call their version conscious capitalism. I consider it just capitalism, as it is the only authentic form of capitalism. Other forms of doing business, including “crony capitalism,” are simply inauthentic versions of the real thing. As we witnessed during the global economic meltdown of 2008 and the Great Recession that followed, these false versions of capitalism cannot be sustained and are doomed to fail over the long term.
Educator Candace Allen, wife of economics Nobel laureate Vernon Smith, writes movingly about the need for entrepreneurial heroes in society and the great impact they have on our lives: “Ultimately, the hero is the representative of the new—the founder of a new age, a new religion, a new city, the founder of a new way of life or a new way of protecting the village against harm; the founder of processes or products that make people in their communities and the world better off. What I will contend here is that in our modern world, the wealth creators—the entrepreneurs—actually travel the heroic path and are every bit as bold and daring as the heroes who fought dragons or overcame evil.”12 Why Capitalism Is Under Attack Despite enabling widespread prosperity, free-enterprise capitalism has earned little respect from intellectuals and almost no affection from the masses. Why is it so disliked by so many people? Does it need to change?
Alfred Russel Wallace, banks create money, basic income, Buckminster Fuller, collective bargaining, computerized trading, creative destruction, David Ricardo: comparative advantage, declining real wages, deindustrialization, diversified portfolio, en.wikipedia.org, Fractional reserve banking, full employment, hydraulic fracturing, income inequality, Jaron Lanier, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, land reform, Mark Zuckerberg, Network effects, oil shale / tar sands, Paul Samuelson, profit maximization, quantitative easing, rent-seeking, Ronald Coase, Ronald Reagan, Silicon Valley, sovereign wealth fund, the map is not the territory, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, transaction costs, Tyler Cowen: Great Stagnation, Upton Sinclair, Vilfredo Pareto, wealth creators, winner-take-all economy
We surveyed a broad sample of shared assets and found that “maintenance is terrible, theft is rampant, and rents often aren’t being collected.” To correct these persistent problems, we recommended sweeping management changes—not just new people dropped into old slots but new institutions designed to manage co-owned wealth responsibly.2 The big, rarely asked question about our current economy is who gets the benefits of co-owned wealth? No one disputes that private wealth creators are entitled to the wealth they create, but who is entitled to the wealth we share is an entirely different question. My contention is that the rich are rich not so much because they create wealth but because they capture a much larger share of co-owned wealth than they’re entitled to. Another way to say this is that the rich are as rich as they are—and the rest of us are poorer than we should be—because extracted rent far exceeds recycled rent.
What Technology Wants by Kevin Kelly
Albert Einstein, Alfred Russel Wallace, Buckminster Fuller, c2.com, carbon-based life, Cass Sunstein, charter city, Clayton Christensen, cloud computing, computer vision, Danny Hillis, dematerialisation, demographic transition, double entry bookkeeping, Douglas Engelbart, en.wikipedia.org, Exxon Valdez, George Gilder, gravity well, hive mind, Howard Rheingold, interchangeable parts, invention of air conditioning, invention of writing, Isaac Newton, Jaron Lanier, John Conway, John Markoff, John von Neumann, Kevin Kelly, knowledge economy, Lao Tzu, life extension, Louis Daguerre, Marshall McLuhan, megacity, meta analysis, meta-analysis, new economy, off grid, out of africa, performance metric, personalized medicine, phenotype, Picturephone, planetary scale, RAND corporation, random walk, Ray Kurzweil, recommendation engine, refrigerator car, Richard Florida, Rubik’s Cube, Silicon Valley, silicon-based life, Skype, speech recognition, Stephen Hawking, Steve Jobs, Stewart Brand, Ted Kaczynski, the built environment, the scientific method, Thomas Malthus, Vernor Vinge, wealth creators, Whole Earth Catalog, Y2K
The city as a whole is a wonderful technological invention that concentrates the flow of energy and minds into computer chip-like density. In a relatively small footprint, a city not only provides living quarters and occupations in a minimum of space, but it also generates a maximum of ideas and inventions. Stewart Brand notes in the “City Planet” chapter of his book Whole Earth Discipline, “Cities are wealth creators; they have always been.” He quotes urban theorist Richard Florida, who claims that forty of the largest megacities in the world, home to 18 percent of the world’s population, “produce two-thirds of global economic output and nearly 9 in 10 new patented innovations.” A Canadian demographer calculated that “80 to 90 percent of GNP growth occurs in cities.” The raggedy new part of each city, its squats and encampments, often house the most productive citizens.
Cambridge, UK: Cambridge University Press, p. 81. 83 “where they huddle around a fireplace”: Joseph Gies and Frances Gies. (1981) Life in a Medieval City. New York: HarperCollins, p. 34. 83 slum at its peak in the 1880s: Robert Neuwirth. (2006) Shadow Cities. New York: Routledge. 83 “this serves all the purposes of the family”: Ibid., p. 177. 83 “bona fide legal title to their land”: Ibid., p. 198. 83 “half a dozen tents or shanties”: Ibid., p. 197. 84 “Cities are wealth creators”: Stewart Brand. (2009) Whole Earth Discipline. New York: Viking, p. 25. 84 “nearly 9 in 10 new patented innovations”: Ibid., p. 32. 84 “GNP growth occurs in cities”: Ibid., p. 31. 84 “in the city at least six years”: Mike Davis. (2006) Planet of Slums. London: Verso, p. 36. 85 but 94 percent of their kids were literate: Stewart Brand. (2009) Whole Earth Discipline. New York: Viking, pp. 42-43. 85 “Discomfort is an investment”: Ibid., p. 36. 85 “get education for her children”: Ibid., p. 26. 86 “more options for their future”: Donovan Webster. (2005) “Empty Quarter.”
Britannia Unchained: Global Lessons for Growth and Prosperity by Kwasi Kwarteng, Priti Patel, Dominic Raab, Chris Skidmore, Elizabeth Truss
Airbnb, banking crisis, Carmen Reinhart, central bank independence, clockwatching, creative destruction, Credit Default Swap, demographic dividend, Edward Glaeser, eurozone crisis, fear of failure, glass ceiling, informal economy, James Dyson, Kenneth Rogoff, knowledge economy, long peace, margin call, Mark Zuckerberg, Martin Wolf, megacity, Mexican peso crisis / tequila crisis, Neil Kinnock, new economy, North Sea oil, oil shock, open economy, pension reform, price stability, profit motive, Ronald Reagan, Sand Hill Road, Silicon Valley, Steve Jobs, Walter Mischel, wealth creators, Winter of Discontent, working-age population, Yom Kippur War
Yet, in the emerging economies of Asia, South America and Africa, economic progress continued unabated. In these countries individual initiative and free enterprise continued to drive progress. Millions of people are 4 Britannia Unchained being pulled out of poverty across the world by the simple processes of capitalism. Britannia Unchained is unembarrassed about its support for business, the proﬁt motive and the individual drive of the wealth creator. The term ‘globalisation’ is a cliché. However, it is certain that, for the ﬁrst time in centuries, the world economy is being driven by what happens outside Europe and North America. At the same time, many parts of the old world are ﬁghting back. Germany has embarked on a programme of welfare reform. Countries in Scandinavia are pursuing labour market reform. Canada has successfully cut its deﬁcit.
banking crisis, British Empire, collective bargaining, corporate governance, corporate social responsibility, financial deregulation, Fractional reserve banking, Hernando de Soto, income inequality, invisible hand, Joseph Schumpeter, laissez-faire capitalism, means of production, medical malpractice, Menlo Park, minimum wage unemployment, Norman Mailer, Plutocrats, plutocrats, price stability, profit maximization, profit motive, Ralph Nader, rent control, rent-seeking, Robert Bork, Ronald Coase, Ronald Reagan, Silicon Valley, statistical model, The Wealth of Nations by Adam Smith, transcontinental railway, union organizing, Upton Sinclair, wealth creators, working poor, Works Progress Administration, zero-sum game
., and Stephen E. Margolis. Winners, Losers, and Microsoft. Oakland, CA: Independent Institute, 2001. The authors use economic theory and evidence to show that the Microsoft Corporation has always been a boon for competitiveness, contrary to the claims by the company’s sour-grapes competitors and résumé-building government antitrust attorneys. Locke, Edwin A. The Prime Movers: Traits of the Great Wealth Creators. New York: AMACOM, 2000. Locke catalogues the personal and business-practice traits of those who have been pioneers of industry and wealth creation in America. Manne, Henry G. The Modern Corporation and Social Responsibility. Washington, D.C.: American Enterprise Institute, 1972. One of the founders of the “law and economics” movement explains how businesses can best be “socially responsible” by steadfastly concentrating on profit maximization.
How Much Is Enough?: Money and the Good Life by Robert Skidelsky, Edward Skidelsky
banking crisis, basic income, Bertrand Russell: In Praise of Idleness, Bonfire of the Vanities, call centre, creative destruction, David Ricardo: comparative advantage, death of newspapers, financial innovation, Francis Fukuyama: the end of history, full employment, happiness index / gross national happiness, income inequality, income per capita, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, lump of labour, market clearing, market fundamentalism, Paul Samuelson, profit motive, purchasing power parity, Ralph Waldo Emerson, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, Tobin tax, union organizing, University of East Anglia, Veblen good, wage slave, wealth creators, World Values Survey, zero-sum game
The way to faster growth lay not through planning, but freeing up markets from red tape, improving incentives through lighter taxes, reducing the power of trade unions, and extending markets through privatization and deregulation. These steps in combination would make the allocation of capital more efficient. The Thatcher–Reagan dispensation also viewed the growth of income inequality as acceptable insofar as it improved the incentives of the “wealth creators”: there would be a “trickle down” from rich to poor. This set of ideas became what Adair Turner calls the dominant “instrumental conventional wisdom” across the political world over the following thirty years.2 In retrospect, it was the shift to a market-based philosophy of growth rather than to a growth-based philosophy as such that inflamed the insatiability of wants we identified in Chapter 1.
Whole Earth Discipline: An Ecopragmatist Manifesto by Stewart Brand
agricultural Revolution, Asilomar, Asilomar Conference on Recombinant DNA, back-to-the-land, biofilm, borderless world, Buckminster Fuller, business process, Cass Sunstein, clean water, Community Supported Agriculture, conceptual framework, Danny Hillis, dark matter, decarbonisation, demographic dividend, demographic transition, Elon Musk, Exxon Valdez, failed state, Geoffrey West, Santa Fe Institute, glass ceiling, Google Earth, Hans Rosling, Hernando de Soto, informal economy, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), invention of agriculture, invention of the steam engine, Jane Jacobs, jimmy wales, Kevin Kelly, Kibera, land tenure, M-Pesa, Marshall McLuhan, megacity, microbiome, New Urbanism, out of africa, Paul Graham, peak oil, Richard Florida, Ronald Reagan, Silicon Valley, smart grid, stem cell, Stewart Brand, The Fortune at the Bottom of the Pyramid, Thomas Malthus, University of East Anglia, uranium enrichment, urban renewal, wealth creators, Whole Earth Catalog, Whole Earth Review, William Langewiesche, working-age population, Y2K
It drew in and consumed . . . . . . and gave back the dung from its pens, and the soot from its chimneys, and steel, and saucepans, and all the tools by which its food was made. And also clothes, and fashions, and ideas, and interesting vices, songs, and knowledge, and something which, if looked at in the right light, was called civilization. That was what civilization meant. It meant the city. —Terry Pratchett, Night Watch Cities are wealth creators; they always have been. They are population sinks, and always have been. Just as agriculture raised the world’s carrying capacity for humans, so did cities. The death rate from “constant battles” declined with urbanization, LeBlanc says, because “as the city folk make tools and improve the technologies that make the farming more efficient, more people can live in the city instead of farming, and the cities grow.
Chavs: The Demonization of the Working Class by Owen Jones
Asperger Syndrome, banking crisis, Berlin Wall, British Empire, call centre, collapse of Lehman Brothers, credit crunch, deindustrialization, Etonian, facts on the ground, falling living standards, first-past-the-post, ghettoisation, Gini coefficient, hiring and firing, housing crisis, Hugh Fearnley-Whittingstall, illegal immigration, income inequality, informal economy, low skilled workers, low-wage service sector, mass immigration, Neil Kinnock, Occupy movement, pension reform, place-making, Plutocrats, plutocrats, race to the bottom, Right to Buy, rising living standards, The Bell Curve by Richard Herrnstein and Charles Murray, The Spirit Level, too big to fail, unpaid internship, upwardly mobile, We are the 99%, wealth creators, Winter of Discontent, women in the workforce, working-age population
But politicians will argue that it is electorally impossible to introduce progressive policies that upset supposedly crucial, but completely misconstrued, 'Middle Britain' swing voters. It even became fashionable among many politicians and commentators to celebrate inequality. Inequality is good because itpromotes competition, goes the theory, and it shows that the people at the top are generating wealth. The corollary of this is the idolization of the rich as 'wealth creators' and entrepreneurs, who have achieved success purely through their own hard work and talent. The class politics of the wealthy has proved extraordinarily effective at demolishing its opponents. Itloudly asserts-c-as Margaret Thatcher famously put it-that 'There Is No Alternative'. Policies that promote the interests of the wealthiest are presented as necessary for the wellbeing of society as a whole.
The New Economics: A Bigger Picture by David Boyle, Andrew Simms
Asian financial crisis, back-to-the-land, banking crisis, Bernie Madoff, Big bang: deregulation of the City of London, Bonfire of the Vanities, Bretton Woods, capital controls, carbon footprint, clean water, collateralized debt obligation, colonial rule, Community Supported Agriculture, congestion charging, corporate raider, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, delayed gratification, deskilling, en.wikipedia.org, energy transition, financial deregulation, financial exclusion, financial innovation, full employment, garden city movement, happiness index / gross national happiness, if you build it, they will come, income inequality, informal economy, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, land reform, light touch regulation, loss aversion, mega-rich, microcredit, Mikhail Gorbachev, mortgage debt, neoliberal agenda, new economy, North Sea oil, Northern Rock, offshore financial centre, oil shock, peak oil, pensions crisis, profit motive, purchasing power parity, quantitative easing, Ronald Reagan, seigniorage, Simon Kuznets, sovereign wealth fund, special drawing rights, The Wealth of Nations by Adam Smith, Thomas L Friedman, too big to fail, trickle-down economics, Vilfredo Pareto, Washington Consensus, wealth creators, working-age population
The economist Paul Krugman, in his book Peddling Prosperity, estimates that as much as 70 per cent of the extraordinary economic growth of the 1980s in the USA was delivered to the richest 1 per cent of the population.6 There were 13 billionaires in the US in 1982, and by 1999 there were 268 – and that was before the dot.com boom.7 We have already seen how Bill Clinton won the 1992 presidential election with the help of the slogan ‘Trickle down doesn’t work’. Despite this definitive statement, most economic policy is based on this flawed old economic dictum that helping the wealth-creators will automatically help everybody else. If that wealth is not productive, or if the bargain driven with the producers is manifestly unfair, then the wealth will not trickle. Even so, the complete failure of so-called ‘trickle down economics’ seems to require some other explanations. Why, despite the apparent success of recent decades, has that not benefited the poorest? Some possible explanations are covered in the previous chapter, but a glimpse at some of the workshops that manufacture clothes for the big brand names is enough to see that there is a problem.
Mythology of Work: How Capitalism Persists Despite Itself by Peter Fleming
1960s counterculture, anti-work, call centre, clockwatching, commoditize, corporate social responsibility, creative destruction, David Graeber, Etonian, future of work, G4S, Goldman Sachs: Vampire Squid, illegal immigration, Kitchen Debate, late capitalism, Mark Zuckerberg, market bubble, market fundamentalism, means of production, neoliberal agenda, Parkinson's law, post-industrial society, profit maximization, profit motive, quantitative easing, Results Only Work Environment, shareholder value, The Chicago School, transaction costs, wealth creators, working poor
This is because the power gulf between the winners and the massively expanding class of losers has become so obvious and thus risks inciting insurrection. For instance, neoliberal society requires a very intrusive, micro-managing and punitive state apparatus which is expensive to run. This enables it to protect and disconnect a highly concentrated ruling class from the majority, who are the real wealth creators in capitalist society. We also see this pattern unfolding in the workplace. As soon as it arrives in any organization, managerialism’s first tendency is to swiftly expand its own ranks and replicate itself over and over again. In his extremely insightful study Fat and Mean (1996), Gordon dispels the myth that the neoliberal enterprise is lean and mean. In fact, many post-Fordist organizations require large numbers of bureaucrats, given the inequalities they create: ‘When supervisory systems are put in place, they acquire a hierarchical imperative all their own.
Equal Is Unfair: America's Misguided Fight Against Income Inequality by Don Watkins, Yaron Brook
3D printing, Affordable Care Act / Obamacare, Apple II, barriers to entry, Berlin Wall, Bernie Madoff, blue-collar work, business process, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, collective bargaining, colonial exploitation, corporate governance, correlation does not imply causation, creative destruction, Credit Default Swap, crony capitalism, David Brooks, deskilling, Edward Glaeser, Elon Musk, en.wikipedia.org, financial deregulation, immigration reform, income inequality, indoor plumbing, inventory management, invisible hand, Isaac Newton, Jeff Bezos, Jony Ive, laissez-faire capitalism, Louis Pasteur, low skilled workers, means of production, minimum wage unemployment, Naomi Klein, new economy, obamacare, Peter Singer: altruism, Peter Thiel, profit motive, rent control, Ronald Reagan, Silicon Valley, Skype, statistical model, Steve Jobs, Steve Wozniak, The Spirit Level, too big to fail, trickle-down economics, Uber for X, urban renewal, War on Poverty, wealth creators, women in the workforce, working poor, zero-sum game
So who created the modern world? Thinkers, of every level of ability, with the most credit going to the men and women of extraordinary ability. One of the most disturbing features of the debate over inequality is the almost deafening silence on the issue of human ability. More often than not, those who condemn inequality don’t discuss ability. And when they do, it is usually to accuse the greatest wealth creators of being greedy exploiters. But the men and women of extraordinary ability aren’t exploiters—they are the great benefactors of anyone who is willing to produce wealth. The Harmony of Interests among Producers When someone pursues unearned wealth, he can do so only at the expense of other people’s interests. They do the work, he seizes the rewards. But when people deal with one another as traders, on mutually beneficial terms or not at all, they enjoy a harmony of interests.
The New New Thing: A Silicon Valley Story by Michael Lewis
Albert Einstein, Andy Kessler, business climate, Chance favours the prepared mind, creative destruction, data acquisition, family office, high net worth, invention of the steam engine, invisible hand, Jeff Bezos, Marc Andreessen, Menlo Park, pre–internet, risk tolerance, Sand Hill Road, Silicon Valley, Silicon Valley startup, the new new thing, Thorstein Veblen, wealth creators, Y2K
The metaphor that Romer used to describe the economy to noneconomists was of a well-stocked kitchen waiting for a brilliant chef to exploit it. Everyone in the kitchen starts with more or less the same ingredients, the metaphor ran, but not everyone produces good food. And only a very few people who wander into the kitchen find entirely new ways to combine old ingredients into delightfully tasty recipes. These people were the wealth creators. Their recipes were wealth. Electricity. The transistor. The microprocessor. The personal computer. The Internet. It followed from the theory that any society that wanted to become richer would encourage the traits, however bizarre, that led people to create new recipes. "A certain tolerance for nonconformism is really critical to the process," as Romer put it. Qualities that in eleventh-century France, or even 1950s America, might have been viewed as antisocial, or even criminal, would be rewarded, honored, and emulated, simply because they led to more... recipes.
Austerity Britain: 1945-51 by David Kynaston
Alistair Cooke, anti-communist, British Empire, Chelsea Manning, collective bargaining, continuous integration, deindustrialization, deskilling, Etonian, full employment, garden city movement, hiring and firing, industrial cluster, invisible hand, job satisfaction, labour mobility, light touch regulation, mass immigration, moral panic, Neil Kinnock, occupational segregation, price mechanism, rent control, reserve currency, road to serfdom, Ronald Reagan, stakhanovite, strikebreaker, the market place, upwardly mobile, urban planning, urban renewal, very high income, wage slave, washing machines reduced drudgery, wealth creators, women in the workforce, young professional
All in all, in Britain’s unexpectedly harsh post-war circumstances, these 20 Labour politicians ‘found themselves in a plight to which a lifetime’s assumptions were quite inappropriate, for instead of redistributing wealth they were faced with the urgent and immensely more difficult task of creating it’. The Barnett version carries a powerful charge, and certainly it is difficult to see the first Chancellor, Hugh Dalton, for all his being the author of an often reprinted textbook entitled Principles of Public Finance, as one of nature’s wealth-creators. ‘Stop talking details, Nicholas! Stick to principles!’ he would boom whenever his friend Nicholas Davenport, City economist and writer, tried to explain the workings of capitalism’s citadel. But his successor Stafford Cripps was a significantly different economic animal. The diary of Raymond Streat, who first got to know Cripps when he was still President of the Board of Trade, reveals an initial deep scepticism eventually giving way to outright admiration for his grasp of detail, superb brain and unmistakable sincerity of purpose.
This was also a turning point in the firm’s fortunes. ‘Four years after starting work at Pilkingtons, he conceived the idea that molten glass could be formed into a continuous ribbon by pouring it into a bath of tin and “floating” it while it cooled.’14Such was the revolutionary float-glass process, eventually to become world-famous. It had been a triumph of not-quite-nepotistic recruitment. For every wealth-creator, unfortunately, there was at least one Lord Portal of Hungerford. An ace fighter pilot in one world war, Chief of the Air Staff in another, his first big peacetime job (1946–51) was as Controller of Atomic Energy. ‘I cannot remember that he ever did anything that helped us,’ the very able Christopher Hinton, responsible for the production of fissile material, unsentimentally recalled. By the late 1940s Portal was taking on directorships – of the Commercial Union, of Fords and of Barclays DCO, where after lunch he invariably picked up a copy of the Field, not the Economist – before in 1953 assuming the chairmanship of one of the country’s most prestigious companies, British Aluminium.
The fortune at the bottom of the pyramid by C. K. Prahalad
barriers to entry, business process, call centre, cashless society, clean water, collective bargaining, corporate social responsibility, deskilling, disintermediation, farmers can use mobile phones to check market prices, financial intermediation, Hernando de Soto, hiring and firing, income inequality, information asymmetry, late fees, Mahatma Gandhi, market fragmentation, microcredit, new economy, profit motive, purchasing power parity, rent-seeking, shareholder value, The Fortune at the Bottom of the Pyramid, time value of money, transaction costs, wealth creators, working poor
Who benefits from the standards and quality requirements demanded by the nodal firm from the constituents to participate in the network? How does this transform the basis for commercial transactions within a developing economy? Learning the Sanctity of Contracts Underpinning this ecosystem is education across all levels. The individual entrepreneur in the village—the Shakti Amma, for example—is being educated to be a responsible entrepreneur. She is a wealth creator in her village. She learns about products, prices, returns, and being an advisor and helper to her customers in the village. When I interviewed one Shakti Amma, who had been an entrepreneur for less than six months, the impact of being part of the ecosystem became obvious. The conversation went something like this: Q: If you could have any wish you want granted, what would your top three wishes be?
The Right to Earn a Living: Economic Freedom and the Law by Timothy Sandefur
barriers to entry, big-box store, Cass Sunstein, clean water, collective bargaining, corporate governance, corporate social responsibility, creative destruction, Edward Glaeser, housing crisis, joint-stock company, Joseph Schumpeter, labour mobility, minimum wage unemployment, positional goods, price stability, profit motive, race to the bottom, Ralph Nader, RAND corporation, rent control, Robert Bork, Silicon Valley, The Wealth of Nations by Adam Smith, trade route, transaction costs, Upton Sinclair, urban renewal, wealth creators
As the lead attorney in the economic liberty project at the Pacific Legal Foundation, I have had a unique opportunity to observe up close the unfair and oftenludicrous restrictions imposed on America’s hardest-working citizens. Dozens of the cases described in this book are ones in which I participated either by representing entrepreneurs or by filing friendof-the-court briefs in defense of important economic freedoms. The opportunity to work with America’s wealth creators, by defending their moral and constitutional right to earn a living, has been among the great experiences of my life. The pages that follow cover a variety of issues relating in different ways to the right to earn a living, proceeding in a roughly chronological fashion. Beginning with the common-law tradition of legal protections for economic liberty, we will see how 17th- and 18th-century judges came to recognize the individual right to earn a living as part of their attack on royal monopolies.
Andrei Shleifer, asset-backed security, bank run, banking crisis, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Bretton Woods, capital controls, carbon footprint, Carmen Reinhart, Cass Sunstein, centre right, choice architecture, cloud computing, collective bargaining, conceptual framework, Corn Laws, corporate governance, creative destruction, credit crunch, Credit Default Swap, debt deflation, decarbonisation, Deng Xiaoping, discovery of DNA, discovery of the americas, discrete time, diversification, double helix, Edward Glaeser, financial deregulation, financial innovation, financial intermediation, first-past-the-post, floating exchange rates, Francis Fukuyama: the end of history, Frank Levy and Richard Murnane: The New Division of Labor, full employment, George Akerlof, Gini coefficient, global supply chain, Growth in a Time of Debt, Hyman Minsky, I think there is a world market for maybe five computers, income inequality, inflation targeting, interest rate swap, invisible hand, Isaac Newton, James Dyson, James Watt: steam engine, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, knowledge worker, labour market flexibility, liberal capitalism, light touch regulation, Long Term Capital Management, Louis Pasteur, low-wage service sector, mandelbrot fractal, margin call, market fundamentalism, Martin Wolf, mass immigration, means of production, Mikhail Gorbachev, millennium bug, money market fund, moral hazard, moral panic, mortgage debt, Myron Scholes, Neil Kinnock, new economy, Northern Rock, offshore financial centre, open economy, Plutocrats, plutocrats, price discrimination, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, railway mania, random walk, rent-seeking, reserve currency, Richard Thaler, Right to Buy, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, Rory Sutherland, Satyajit Das, shareholder value, short selling, Silicon Valley, Skype, South Sea Bubble, Steve Jobs, The Market for Lemons, the market place, The Myth of the Rational Market, the payments system, the scientific method, The Wealth of Nations by Adam Smith, too big to fail, unpaid internship, value at risk, Vilfredo Pareto, Washington Consensus, wealth creators, working poor, zero-sum game, éminence grise
One component, as argued earlier, is that the financial system has to be more generous to small firms, with more relationship banking together with networks of business angels to support the start-up of many small and medium-sized enterprises. But another vital component is the competition regime. The British have never taken competition seriously: the left has preferred to think of alternatives to capitalism rather than try to improve it; the right has never seen the merit of a robust regime in which incumbent and powerful firms are challenged, curbed or even dismantled. Companies are self-professed ‘wealth creators’ because they are in the private rather than the public sector. (They also give generously to the Conservative Party.) Why regulate them with competition inquiries? Yet an aggressive competition policy is an indispensable support to small firms, innovation and entrepreneurship. It keeps markets open, affords opportunity and makes it harder for incumbent firms to defend their franchises unfairly.
When the Iron Lady Ruled Britain by Robert Chesshyre
Berlin Wall, Big bang: deregulation of the City of London, British Empire, corporate raider, deskilling, Etonian, Fall of the Berlin Wall, financial deregulation, full employment, housing crisis, manufacturing employment, mass immigration, means of production, Neil Kinnock, North Sea oil, oil rush, Plutocrats, plutocrats, Right to Buy, Ronald Reagan, school choice, Silicon Valley, the market place, trickle-down economics, union organizing, wealth creators, young professional
There were Mercedes, BMWs, Audis outside many homes (most of them are company perks); it was hard to park at night; neighbourhood car pools swept children away to fee-paying academies; quite modest homes changed hands for sums that a decade earlier would have made someone very rich. Such wealth seemed unreal: what was being done to justify it? Had Britain become overnight a nation of risk-takers and wealth creators? Was I surrounded by entrepreneurs? It seemed unlikely. They did not seem men of the stamp I had known in the States: this had to be some form of North Sea Bubble. There had been a lack of financial reality about Washington DC, with lobbyists and lawyers creaming millions of dollars off the federal government and off their clients, but in 1981, when we went there, at least the country was rich and productive enough to afford them.
How Markets Fail: The Logic of Economic Calamities by John Cassidy
Albert Einstein, Andrei Shleifer, anti-communist, asset allocation, asset-backed security, availability heuristic, bank run, banking crisis, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Black-Scholes formula, Bretton Woods, British Empire, capital asset pricing model, centralized clearinghouse, collateralized debt obligation, Columbine, conceptual framework, Corn Laws, corporate raider, correlation coefficient, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, Daniel Kahneman / Amos Tversky, debt deflation, diversification, Elliott wave, Eugene Fama: efficient market hypothesis, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, full employment, George Akerlof, global supply chain, Gunnar Myrdal, Haight Ashbury, hiring and firing, Hyman Minsky, income per capita, incomplete markets, index fund, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invisible hand, John Nash: game theory, John von Neumann, Joseph Schumpeter, Kenneth Arrow, laissez-faire capitalism, Landlord’s Game, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, margin call, market bubble, market clearing, mental accounting, Mikhail Gorbachev, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Myron Scholes, Naomi Klein, negative equity, Network effects, Nick Leeson, Northern Rock, paradox of thrift, Pareto efficiency, Paul Samuelson, Ponzi scheme, price discrimination, price stability, principal–agent problem, profit maximization, quantitative trading / quantitative ﬁnance, race to the bottom, Ralph Nader, RAND corporation, random walk, Renaissance Technologies, rent control, Richard Thaler, risk tolerance, risk-adjusted returns, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, South Sea Bubble, sovereign wealth fund, statistical model, technology bubble, The Chicago School, The Great Moderation, The Market for Lemons, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, unorthodox policies, value at risk, Vanguard fund, Vilfredo Pareto, wealth creators, zero-sum game
“By taxation, by inflation, by the remorseless flood of regulations and legislation, by controls and by the constant and arbitrary interventions of authority, successive governments since the war have cumulatively taken away both the pleasure and the rewards that once made risk-taking worthwhile,” Sir Keith Joseph, the primary intellectual architect of Thatcherism, said in 1976. “By this attitude we have driven out some wealth-creators; discouraged others; shrivelled the impulse to expand and throttled enterprise.” Margaret Thatcher and Ronald Reagan both got elected on promises to restore incentives to work and invest. They were viewed as economic radicals, but much of what they said was common sense. Beyond a certain level—what it is can be debated—taxes discourage effort and encourage evasion. Excessive regulations, such as the ones that used to govern the airline industry, stifle competition and preserve high prices.
Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World by Don Tapscott, Alex Tapscott
Airbnb, altcoin, asset-backed security, autonomous vehicles, barriers to entry, bitcoin, blockchain, Bretton Woods, business process, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, cloud computing, cognitive dissonance, commoditize, corporate governance, corporate social responsibility, creative destruction, Credit Default Swap, crowdsourcing, cryptocurrency, disintermediation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Erik Brynjolfsson, ethereum blockchain, failed state, fiat currency, financial innovation, Firefox, first square of the chessboard, first square of the chessboard / second half of the chessboard, future of work, Galaxy Zoo, George Gilder, glass ceiling, Google bus, Hernando de Soto, income inequality, informal economy, information asymmetry, intangible asset, interest rate swap, Internet of things, Jeff Bezos, jimmy wales, Kickstarter, knowledge worker, Kodak vs Instagram, Lean Startup, litecoin, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, means of production, microcredit, mobile money, money market fund, Network effects, new economy, Oculus Rift, off grid, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, performance metric, Peter Thiel, planetary scale, Ponzi scheme, prediction markets, price mechanism, Productivity paradox, QR code, quantitative easing, ransomware, Ray Kurzweil, renewable energy credits, rent-seeking, ride hailing / ride sharing, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, seigniorage, self-driving car, sharing economy, Silicon Valley, Skype, smart contracts, smart grid, social graph, social software, Stephen Hawking, Steve Jobs, Steve Wozniak, Stewart Brand, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, The Wisdom of Crowds, transaction costs, Turing complete, Turing test, Uber and Lyft, unbanked and underbanked, underbanked, unorthodox policies, wealth creators, X Prize, Y2K, Zipcar
Reconfiguring the Corporation as the Engine of Capitalism With the rise of a global peer-to-peer platform for identity, trust, reputation, and transactions, we will finally be able to re-architect the deep structures of the firm for innovation, shared-value creation, and perhaps even prosperity for the many, rather than just wealth for the few. This doesn’t mean smaller firms in terms of revenue or impact. To the contrary, we’re talking about building twenty-first-century companies, some that may be massive wealth creators and powerful in their respective markets. We do think enterprises will look more like networks rather than the vertically integrated hierarchies of the industrial age. As such there is an opportunity to distribute (not redistribute) wealth more democratically. We’ll also take you on a stroll through the mind-boggling world of smart contracts, new autonomous economic agents, and what we call distributed autonomous enterprises where intelligent software takes over the management and organization of many resources and capabilities, perhaps displacing corporations.
The Great Turning: From Empire to Earth Community by David C. Korten
Albert Einstein, banks create money, big-box store, Bretton Woods, British Empire, clean water, colonial rule, Community Supported Agriculture, death of newspapers, declining real wages, European colonialism, Francisco Pizarro, full employment, George Gilder, global supply chain, global village, God and Mammon, Hernando de Soto, Howard Zinn, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, joint-stock company, land reform, market bubble, market fundamentalism, Monroe Doctrine, Naomi Klein, neoliberal agenda, new economy, peak oil, planetary scale, Plutocrats, plutocrats, Project for a New American Century, Ronald Reagan, Rosa Parks, sexual politics, source of truth, South Sea Bubble, stem cell, structural adjustment programs, The Chicago School, trade route, Washington Consensus, wealth creators, World Values Survey
The guiding mantra is create global monopolies to eliminate local choice, take all you can get and pass costs to others. The guiding mantra is create beneﬁcial local options, take only what you need, and accept responsibility for the whole. The rules favor absentee owners, monopoly-scale enterprises, ﬁnancial speculators, rights of property, and central planning by global corporations. The rules favor participating owners, human-scale enterprises, wealth creators, rights of people, and self-organization by people and communities. Denying any responsibility for public interests, proponents seek to secure impermeable boundaries around the exclusive private interests of corporations and their wealthiest owners, while demanding that communities eliminate any borders protective of public interests. Recognizing the need of all living entities to protect and balance individual and community interests, proponents support both ﬁrms and communities in establishing managed protective borders that support, fair, balanced and mutually beneﬁcial exchange.
The Price of Inequality: How Today's Divided Society Endangers Our Future by Joseph E. Stiglitz
affirmative action, Affordable Care Act / Obamacare, airline deregulation, Andrei Shleifer, banking crisis, barriers to entry, Basel III, battle of ideas, Berlin Wall, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, collapse of Lehman Brothers, collective bargaining, colonial rule, corporate governance, Credit Default Swap, Daniel Kahneman / Amos Tversky, Dava Sobel, declining real wages, deskilling, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, framing effect, full employment, George Akerlof, Gini coefficient, income inequality, income per capita, indoor plumbing, inflation targeting, information asymmetry, invisible hand, jobless men, John Harrison: Longitude, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, Kenneth Arrow, Kenneth Rogoff, labour market flexibility, London Interbank Offered Rate, lone genius, low skilled workers, Marc Andreessen, Mark Zuckerberg, market bubble, market fundamentalism, mass incarceration, medical bankruptcy, microcredit, moral hazard, mortgage tax deduction, negative equity, obamacare, offshore financial centre, paper trading, Pareto efficiency, patent troll, Paul Samuelson, payday loans, price stability, profit maximization, profit motive, purchasing power parity, race to the bottom, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, Simon Kuznets, spectrum auction, Steve Jobs, technology bubble, The Chicago School, The Fortune at the Bottom of the Pyramid, The Myth of the Rational Market, The Spirit Level, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transaction costs, trickle-down economics, ultimatum game, uranium enrichment, very high income, We are the 99%, wealth creators, women in the workforce, zero-sum game
To put it baldly, there are two ways to become wealthy: to create wealth or to take wealth away from others. The former adds to society. The latter typically subtracts from it, for in the process of taking it away, wealth gets destroyed. A monopolist who overcharges for his product takes money from those whom he is overcharging and at the same time destroys value. To get his monopoly price, he has to restrict production. Unfortunately, even genuine wealth creators often are not satisfied with the wealth that their innovation or entrepreneurship has reaped. Some eventually turn to abusive practices like monopoly pricing or other forms of rent extraction to garner even more riches. To take just one example, the railroad barons of the nineteenth century provided an important service in constructing the railroads, but much of their wealth was the result of their political influence—getting large government land grants on either side of the railway.