Daily Archives: December 12, 2016

Can We Fix Capitalism in the Age of Trump and Brexit?

BOOK REVIEW

The Entrepreneurial State: debunking public vs. private sector myths, Author: Mariana Mazzucato.
Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth, Editors: Michael Jacobs and Mariana Mazzucato.

By Lynn Parramore – To give you some stats, real median household incomes in the U.S. were basically the same in 1989 as in 2014. But we are also seeing similar challenges in the U.K. in the stagnation of real wages. Recent analysis from the U.K. Institute for Fiscal Studies suggests that wages will still be below 2008 levels in 2021.

People work hard and companies make big profits, but employees don’t see that they share in the wealth they help to create.

For too long, these problems have been ignored. And the results of the U.S. election and the EU referendum showed that people were no longer willing to vote for the status quo.

Our current model of capitalism and the dominant ideas in policy making have led to a failure of investment by both the public and the private sector in the things that drive productivity, and which affect its distribution.

Shareholder value theory — the destructive idea that companies should be run solely for the benefit of shareholders — has led to financialized businesses that do not invest in the areas that will lead to future growth or the invention of useful new products. more> https://goo.gl/ywJkzT

The Difficult Nature Of Housing

By Mariell Juhlin – It is truly a tall order to fully understand the contribution of housing to growth, welfare and prosperity among individuals and societies.

Rarely does housing research capture, or attempt to capture, the full socio-economic and dynamic effects of housing on individuals and society. Still, housing is affected by, and in turn affects, most other societal areas from architecture to private sector development. An obvious explanation is that housing markets are too complex to be described by unitary market equilibrium models and would require an empirical basis for submarket modeling.

This, however, has not been embraced in applied research to any greater extent and, when it’s been done, it has been subject to inconsistency. The likely implication of this is that the effects of a functional, or indeed a dysfunctional, housing market may be both under-estimated and under-valued in literature and policy-research. Why so? more> https://goo.gl/wBDBfy

Innovating Medical Treatment

By Stephen Chadwick – When the medical industry uses big data, new kinds of clinical care can be delivered and treatments that exactly match an individual’s genetics, environment and lifestyle will be devised, administered and monitored. This is the dream of Precision Medicine that delivers the right treatment, to the right person, at the right time.

It’s a revolution in healthcare that’s been predicted ever since the first human genome sequence was announced at the start of this century. Each person’s genetics inform their personal medical care through their lifetime and more effective treatments are then developed around that information. Giving the same treatments to everyone is a medical model the days of which are numbered. more> https://goo.gl/kk5LNh