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


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>

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