The rise of innovative state capitalism
- 3 July 2012
"This scandal isn't about price-fixing. It's not about a bank. It's not even about power and privilege, corruption and compromise. It's about life, tragedy, and human potential. It's about the capacity to create a worthwhile future." Harvard Business Review Blog Network
If you read the likes of Joseph Stiglitz and Paul Krugman, you'll be aware about the rise in income inequality in the United States over the past 30 years. But according to Tim Worstall, its also true that during that same period of time, consumption inequality hasn't changed very much at all – meaning it isn't actually obvious that inequality has risen. Adam Smith Institute
Suranjana Nabar-Bhaduri urges Indian policy-makers to promote the growth of its domestic industry because India's services-led growth has a limited ability to raise the living standards of the population as a whole. Triple Crisis
The fact that China, Brazil and India have yielded successful businesses by combining government support with a mandate for profitability and independent management, shatters the idea that state capitalists cannot foster innovation to match developed economies. Bloomberg Businessweek
As households and firms deleverage, they weaken growth and wear down bank balance sheets and government finances, resulting in a vicious cycle that leads to a prolongation of financial fragility and economic weakness. Therefore, "only when balance sheets across all sectors are repaired will virtuous cycles replace the vicious ones and the global economy move back to a balanced growth path." Vox Eu
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