The Dumbest Idea In The World: Maximizing Shareholder Value – Forbes

“It isn’t just about the money for shareholders,” writes Martin, “or even the dubious CEO behavior that our theories encourage. It’s much bigger than that. Our theories of shareholder value maximization and stock-based compensation have the ability to destroy our economy and rot out the core of American capitalism.

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Source : Forbes

Don’t Worry, America: China is Rising But Not Catching Up – Harvard – Belfer Center for Science and International Affairs

Because of the one-child policy, China will soon suffer the most severe aging process in human history. The ratio of Chinese workers per retiree will plummet from 8:1 today to 2:1 by 2040. The fiscal cost of this swing in dependency ratios alone may exceed 100 percent of China’s GDP. The American working-age population, by contrast, will expand by 17 percent over the next 40 years. America’s fiscal future may not be bright, but it is brighter than China’s

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Source : Belfer Center for Science and International Affairs

Rising Awareness in Class Divide, Many Point to OWS

A new Pew Research Center survey of 2,048 adults finds that about two-thirds of the public (66%) believes there are “very strong” or “strong” conflicts between the rich and the poor—an increase of 19 percentage points since 2009.

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Source : Common Dreams

Quote of the week

The trader John Paulson earned himself $4 billion and his funds another $15 billion in one year by betting against the housing market. For help predicting the extent of the downturn, Paulson hired none other than Alan Greenspan as an advisor to his hedge fund. The Fed chairman who encouraged the housing bubble even after it began to crash is now cashing in on the very devastation his policies created. The money did not disappear at all.

Douglas Rushkoff  : Life Inc

 

Quote of the week

“Neo-liberal pro-rich reform in the 1980s. According to World Bank data, the world economy used to grow in per capita terms at over 3 per cent during the 1960s and 70s, while since the 1980s it has been growing at the rate of 1.4 per cent per year”

– Ha-Joon Chang – Faculty of Economics and Politics, University of Cambridge

The National Security Complex: Too Big to Fail?

“The Pentagon budget is, for instance, about 50 percent higher today than the Cold War average and accounts for nearly half of all military expenditures globally. And yet it has kept right on growing;”

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Source : Mother Jones

Spatial Protest in the Era of Fast Capital

“There is nothing to oversee the hyper growth of derivatives or high frequency trading or endless debt games, because there is no global institution that equates with the global markets. It is a clash of the market state and the nation state … The market state is winning, which is probably why we are all on the brink of losing everything.”
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Source : Polis

New Inequality Data Likely to Boost “Occupy” Movement

“Lawmakers have effectively blocked all efforts to increase taxes on the corporations and wealthiest individuals, initiatives supported by about two-thirds of the public, according to the poll.”
“The CBO findings should bolster popular support for such efforts. While the after-tax income of the poorest 20 percent of U.S. households grew by an average of less than one percent per year”

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Source : Common Dreams

Rich People Create Jobs!

“This fear is easy to understand. No one likes paying higher taxes. But do lower taxes actually spur economic growth? Bruce Bartlett,an economist in the Reagan administration, has compared tax rates in various rich countries in 1979 to each country’s growth rate since then. His conclusion? There’s virtually no correlation.”

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Source : Mother Jones

Quote of the week – Free markets and democracy

“And so, the balance of business expenditures shifts from product research to market research. The television commercial has oriented business away from making products of value and toward making consumers feel valuable, which means that the business of business has now become pseudo-therapy.”

– Neil Postman