By Zachary Karabell – This is just a smattering of examples over the past few weeks. Increasingly, our debates about – and our solutions to – pressing issues such as immigration, budgets and debt are framed in the context of all-powerful economic laws that dictate what is and is not possible. There’s just one slight problem:
There are no laws of economics.
For sure, many economists and large parts of society believe there are. The high levels of anxiety about deficits and government debt, not just in the United States but throughout the euro zone and much of the world, stem from the belief that if central banks create too much money, it will inevitably lead to inflation. Why? Because the “laws of economics” say the supply of money will cause inflation if overall output stays the same. more> http://tinyurl.com/ckx2xkp
By Douglas Holtz-Eakin – The fiscal cliff is a danger to the economy. Some have argued that cliff diving is benign either because the cliff itself is an illusion – it is really a gentle slope.
Both arguments miss the key role that would be played by financial markets. Cliff diving would have a significant impact on financial markets, impairing asset values, exacerbating credit stringency and amplifying the direct effects on the Main Street economy. These effects cannot be “unwound” by retroactively legislating away the fiscal cliff.
Unlike budgetary moves that can be reversed, these kinds of negative effects on market confidence in the outlook are durable. Many analysts, for example, attribute at least part of the slowing in the 2nd half of 2011 to a decline in consumer confidence because of the political battle over raising the debt limit. more> http://tinyurl.com/a7o6mtr
By Steve Denning – Among many other speakers, Roger Martin, Dean of the Rotman School of Management, will discuss the shift from maximizing shareholder value to customer capitalism. He will talk about: what went wrong with capitalism? Can it be reformed? What are the main axes to pursue?
My own contribution comes in an article on the Global Drucker Forum this morning, “The Revolutionary Tenets of Management 2.0”. more> http://tinyurl.com/8ejc7cd
Posted in Business, Economy, Education, Leadership
Tagged Business, Capitalism, Economics, Industrial economy, Leadership, Management, Roger Martin, Rotman School of Management, Shareholder value, Steve Denning