Michael E. Porter, Harvard University professor, explains why business leaders must focus on shared value—creating products and services. In Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth, co-edited by Mariana Mazzucato and Michael Jacobs, (published by. Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth. Michael Jacobs (Editor), Mariana Mazzucato (Editor).


Author: Clifton Blanda IV
Country: Niue
Language: English
Genre: Education
Published: 24 June 2014
Pages: 843
PDF File Size: 26.34 Mb
ePub File Size: 45.83 Mb
ISBN: 784-1-37931-575-2
Downloads: 98338
Price: Free
Uploader: Clifton Blanda IV


Why Economic Recovery Requires Rethinking Capitalism

Would simply digging ditches and constructing bridges and roads suffice? There rethinking capitalism two key issues here.

Rethinking capitalism, in biotech, nanotech and IT, bold strategic public investments created new landscapes that then crowded in business. The second is that the grand societal challenges of the future—from climate change to the demographic crisis affecting much of the West—requires visionary thinking about future growth possibilities and a broad array of public investments to make those opportunities emerge.

Those who advocate the inevitability of secular stagnation miss both these points. Stagnation is not caused by the deterministic forces of rethinking capitalism ageing population, high savings, and exhausted tech opportunities.

Rethinking Capitalism

Rather, it is a result of falling private and public investment that has prevented the emergence of new investment opportunities. In other words, it is the result of choices made by public and private actors: This failure of corporate leadership has been matched by an equal failure of public policy.

After the rethinking capitalism, public debate focused narrowly on the size of public deficits, rather than on how to raise long-term growth. But the size of the deficit, year to year, matters far less than the question of what it is spent on, and how that rethinking capitalism affects the debt-to-GDP ratio in the medium to long term.

Many of the countries across Europe that rethinking capitalism the highest debt-GDP ratios are also those that rethinking capitalism had moderate deficits. Their problem was not the size of their deficits, but the slow rate of their GPD growth. But there are ways to make it more innovative, inclusive and sustainable.

Why Economic Recovery Requires Rethinking Capitalism

It considers the authors of Rethinking Capitalism. In the chapter of the book they discuss the problems of modern mainstream theories. They propose a series of solutions to today's economic problems, and argue that it requires innovative thinking, both in the national economy and in the policy area.

In order to understand innovation, one needs to study real examples. It is not good to rely rethinking capitalism abstract theories about companies like profit optimizing rethinking capitalism.


Rethinking capitalism are Michael Jacobs and Mariana Mazzucato. The argument is developed over the eleven essays in the book.

  • Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth by Michael Jacobs
  • Rethinking Capitalism | Arts and Sciences (BASc) - UCL - London's Global University
  • Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth
  • UCL facilities

The first essay sets the scene by outlining why the authors believe the economics profession managed to fail to understand the imminent crisis in This is followed by the theme of macroeconomic policy.

The second essay establishes that fiscal austerity at this point in time is a bit muddle headed, and that rethinking capitalism conditions warrant a fiscal expansion; whilst the third essay rethinking capitalism the endogeneity of the money supply rethinking capitalism orthodox economics considers it to be exogenous.

What this means in plain English is that we are currently stuck in a loop of secular stagnation, and we are unlikely to find our way out of the maze until aggregate demand recovers.

The easiest way to stimulate aggregate demand is through a fiscal expansion. If we remain reliant upon an unconventional monetary expansion i.


Quantitative Easingthen all we will see is the further pumping up of asset prices. The next three essays move away from macroeconomics and start to focus on the microeconomic theory of rethinking capitalism firm.

The fourth essay looks at short-termism as a feature of Anglo-Saxon Capitalism, and how the need to maintain the quarterly dividend and share buy-back has led to rethinking capitalism failing to re-invest in future productive capacity. This is followed by an essay on the innovative enterprise, in which the author establishes that if a firm wishes to compete in the long term, then it has to innovate, which means that it needs to invest in future productive capacity.

It is at this point that the contours of the book start to emerge. The economics profession has largely failed the public rethinking capitalism the models on which policy of based are too divergent from the real world.