It
is worthy to take a look at this video with Mr. Kay and Mrs.
Mazzucato about Capitalism; or better say, market economies and
innovation projects.
According to Mr. Kay modern business and the world of capitalism is misleading and they do not have the same meaning as they did in the Industrial Revolution. The term “ownership”, for example is not meaningful anymore for the world of capitalism, as well as the economics do not arrive anymore from the owner of capital. “Who owns the means of production does not matter”, says Mr. Kay. The point of view here is that there is a link between economics and political influence. Who are the owners of the shares of a company? That´s an important question that implies many answers within it: who decides the laws of the shares, who decides who votes, or the interest for that shares... Modern business is less about capital markets than it used to be.
Three characteristics of the market economy
- Management of operations and the problem of coordination.
- Experimental discoveries. Uncertainty means the impossibility of the unpredictability and the incapability to know the range of alternatives. Innovation rarely succeed?
-Decentralization. “rent-seeking” activities. Breaking down concentrations. Looking for discipline, economic and political pluralism.
On the other side, Mrs. Mazzucato talks about markets as the outcomes explaining that the value is the most important thing. Where does value come from an organization? Organizations interact collectively (collective process). And the state intervenes in thee process through funding resources; “everything that makes a company looks smart and not stupid was funding by the state.”
Important points:
Public private partners = market unequal partners.
Nationalization is not innovative.
The major challenge is to try to achieve a successful political mechanisms to improve market economies.
Role of the state needs to be more pragmatic.
Regulations that understand all the process of the financial industry. Policy comes from theory.
John Kay is a visiting Professor of Economics at the London School of Economics and Political Science. He contributes with a weekly column to the Financial Times. Also, he is author of many books, as "the Truth about Markets" (2003).
Mariana Mazzucato, an economist, holds the RM Phillips Chair in Science and Technology Policy at the University of Sussex (SPRU). Her work focuses on the relationship between financial markets, innovation and economic growth.
According to Mr. Kay modern business and the world of capitalism is misleading and they do not have the same meaning as they did in the Industrial Revolution. The term “ownership”, for example is not meaningful anymore for the world of capitalism, as well as the economics do not arrive anymore from the owner of capital. “Who owns the means of production does not matter”, says Mr. Kay. The point of view here is that there is a link between economics and political influence. Who are the owners of the shares of a company? That´s an important question that implies many answers within it: who decides the laws of the shares, who decides who votes, or the interest for that shares... Modern business is less about capital markets than it used to be.
Three characteristics of the market economy
- Management of operations and the problem of coordination.
- Experimental discoveries. Uncertainty means the impossibility of the unpredictability and the incapability to know the range of alternatives. Innovation rarely succeed?
-Decentralization. “rent-seeking” activities. Breaking down concentrations. Looking for discipline, economic and political pluralism.
On the other side, Mrs. Mazzucato talks about markets as the outcomes explaining that the value is the most important thing. Where does value come from an organization? Organizations interact collectively (collective process). And the state intervenes in thee process through funding resources; “everything that makes a company looks smart and not stupid was funding by the state.”
Important points:
Public private partners = market unequal partners.
Nationalization is not innovative.
The major challenge is to try to achieve a successful political mechanisms to improve market economies.
Role of the state needs to be more pragmatic.
Regulations that understand all the process of the financial industry. Policy comes from theory.
John Kay is a visiting Professor of Economics at the London School of Economics and Political Science. He contributes with a weekly column to the Financial Times. Also, he is author of many books, as "the Truth about Markets" (2003).
Mariana Mazzucato, an economist, holds the RM Phillips Chair in Science and Technology Policy at the University of Sussex (SPRU). Her work focuses on the relationship between financial markets, innovation and economic growth.
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