Rules for Making Capitalism Sustainable
Conventional measures of economic performance, such as investment and productivity, are often skewed to favor short-term profits. Here is how capitalism can take a longer view.
What's the Latest Development?
Common evaluations of economic growth have come to favor short-term profit over long-term investment, says Nancy Folbre, economics professor at the U of Mass, Amherst. An important distinction in understanding the problem is the difference between public and private companies. Executives at public companies depend on the continued investment of a large number of shareholders, constraining their actions to please those who are often more interested in getting a return on their money than the long-term future of the company.
What's the Big Idea?
Until a viable alternative to capitalism emerges, small changes can be made to the global economic order to make the world a more just and more stable place. One change involves stopping quarterly earnings reports, which drive capricious investment, in favor of yearly reports. Investment banks could sell 'loyalty securities' which offer a higher rate of return in exchange for longer-term investing. Assessing the value of 'stranded assets', such as unpaid mortgages and the environment, would also contribute to more responsible investing.
Photo credit: shutterstock.com
Setting a simple intention and coming prepared can help you — and those around you — win big.
- Setting an intention doesn't have to be complicated, and it can make a great difference when you're hoping for a specific outcome.
- When comedian Pete Holmes is preparing to record an episode of his podcast, "You Made it Weird with Pete Holmes," he takes 15 seconds to check in with himself. This way, he's primed with his own material and can help guests feel safe and comfortable to share theirs, as well.
- Taking time to visualize your goal for whatever you've set out to do can help you, your colleagues, and your projects succeed.
The Amazon Rainforest is often called "the planet's lungs."
- For weeks, fires have been burning in the Amazon rainforest in Brazil, likely started by farmers and ranchers.
- Brazil's president, Jair Bolsonaro, has blamed NGOs for starting the flames, offering no evidence to support the claim.
- There are small steps you can take to help curb deforestation in the Amazon rainforest, which produces about 20 percent of the world's oxygen.
How do we combat the roots of these hateful forces?
- American Psychological Association sees a dubious and weak link between mental illness and mass shootings.
- Center for the study of Hate and Extremism has found preliminary evidence that political discourse is tied to hate crimes.
- Access to guns and violent history is still the number one statistically significant figure that predicts gun violence.