The Growing Imbalance between Value Creation and Value Extraction

2019 ◽  
pp. 1-13
Author(s):  
William Lazonick ◽  
Jang-Sup Shin
Keyword(s):  
Corporate Governance ◽  
Value Creation ◽  
Regime Change ◽  
Structural Changes ◽  
Neoclassical Economics ◽  
Employment Opportunities ◽  
Us Economy ◽  
The Us ◽  
The World

This introductory chapter explains how the US economy has transitioned from the “retain-and-invest” regime to the “downsize-and-distribute” regime, resulting in the growing imbalance between value creation and value extraction. It posits that this corporate-governance regime change was integral to the explosion of the incomes of the richest households and the erosion of middle-class employment opportunities through three major structural changes, “rationalization,” “marketization,” and “globalization.” It also highlights the academic roots of the regime change, that is, the nonsensical theory of the “unproductive firm” in neoclassical economics and the maximizing shareholder (MSV) view of the world that builds on it. The chapter then summarizes the contents of each chapter of the book.

scholarly journals Strings Attached

2017 ◽  
Vol 139 (05) ◽  
pp. 32-37
Author(s):  
Tim Sprinkle
Keyword(s):  
Public Relations ◽  
Growth Potential ◽  
American Business ◽  
Us Economy ◽  
Foreign Government ◽  
The Us ◽  
The World ◽  
Us Government ◽  
International Investors ◽  
Different Parts

This article discusses reasons for various American startup companies to shift abroad for funding and production, and their impact on the American business scenarios. Founders are accepting funding from overseas investors, setting up supply chains in different parts of the world, servicing customers internationally, and even selling their businesses to foreign government-backed funds. Although the idea of losing American inventions and technologies to international investors and buyers is not generally good for public relations, the current landscape of global startup development has winners on both sides, and overseas involvement in US companies does not necessarily mean a net loss domestically. The US government must find a way to move the US economy forward, preventing predatory pricing and mercantilist practices by exporters while at the same time reaping the international flow of ideas and funds that power innovation. The experts believe that ignoring the rest of the world would not only limit the growth potential of US startups, but over time would reduce America’s global leadership in innovation.

scholarly journals A Retrospective Look at Rescuing and Restructuring General Motors and Chrysler

2015 ◽  
Vol 29 (2) ◽  
pp. 3-24 ◽  
Author(s):  
Austan D. Goolsbee ◽  
Alan B. Krueger
Keyword(s):  
Automobile Industry ◽  
Decision Process ◽  
General Motors ◽  
Difficult Decision ◽  
Industrial Companies ◽  
Us Economy ◽  
The Us ◽  
Look Back ◽  
The World ◽  
Us Government

The rescue of the US automobile industry amid the 2008–2009 recession and financial crisis was a consequential, controversial, and difficult decision made at a fraught moment for the US economy. Both of us were involved in the decision process at the time, but since have moved back to academia. More than five years have passed since the bailout began, and it is timely to look back at this unusual episode of economic policymaking to consider what we got right, what we got wrong, and why. In this article, we describe the events that brought two of the largest industrial companies in the world to seek a bailout from the US government, the analysis that was used to evaluate the decision (including what the alternatives were and whether a rescue would even work), the steps that were taken to rescue and restructure General Motors and Chrysler, and the performance of the US auto industry since the bailout. We close with general lessons to be learned from the episode.

The World Economy

2007 ◽  
Vol 200 ◽  
pp. 7-30 ◽  
Keyword(s):  
Global Economy ◽  
World Economy ◽  
Housing Markets ◽  
Housing Investment ◽  
The Past ◽  
Us Economy ◽  
The Us ◽  
The World ◽  
Monetary Authorities ◽  
Rates Of Growth

The global economy expanded by 5.3 per cent in 2006, one of the fastest rates of growth in the past 35 years. We project further expansions of 5 per cent this year and 4¾ per cent in 2008. The key risks to the forecast that we highlight in this Review relate to global housing markets and the current stance of monetary policy. The US economy is restrained by the recent correction in its housing market, which is expected to continue to weigh on the economy through 2008. There is some concern that the housing investment downturn may spread to other economies, and in this report we explore the areas most at risk to such a contagion. We also consider the recent volatility in the oil price, which makes it difficult for monetary authorities to distinguish signal from noise. If too much emphasis is placed on what subsequently turns out to be noise, policy settings could turn out to be overly lax or stringent.

The ET column. Will Chinese take over from English as the world's most important language?

English Today ◽  
2010 ◽  
Vol 26 (4) ◽  
pp. 3-4 ◽  
Author(s):  
David Graddol
Keyword(s):  
Energy Consumption ◽  
The West ◽  
Absolute Size ◽  
Us Economy ◽  
The Us ◽  
The World ◽  
World Economic ◽  
Global Language ◽  
The Uk ◽  
China’S Economy

Whenever I've given a lecture on the future of English, the question I am most frequently asked is ‘Will Chinese take over from English as the global language?’. With China's economy continuing to grow fast, whilst those of the west slow down in recession, China has been rising up the world economic rankings and has overtaken other economies faster than predicted. It seems no time since it overhauled the UK economy to become the world's number 4 (2005), and then Germany (2007) to become number 3. During the summer of 2010 it edged past Japan to become the world's second largest economy. It may take another 20 years to overtake the US economy in absolute size, though it may already have become the world's largest exporter (overtaking Germany), and has already overtaken the US in energy consumption. Next year, China is expected to take over from the US as the world's largest manufacturer – a position the US has held since it overtook the UK in the late 1890s.

At A Glance…: The world economy

2006 ◽  
Vol 196 ◽  
pp. 2-3
Keyword(s):  
Interest Rates ◽  
Euro Area ◽  
Global Economy ◽  
World Economy ◽  
Us Economy ◽  
The Us ◽  
The World ◽  
Global Growth

• Global growth will remain rapid over the next two years, with world GDP rising by 4.8 per cent in 2006 and 4.5 per cent in 2007.• China's growing weight in the global economy is a key reason why interest rates have been unusually low.• The US economy will grow by 3.3 per cent this year and 2.9 per cent in 2007.• Japan will expand by 2.9 per cent in 2006 and 2.3 per cent next year.• The Euro Area will grow by 2.1 per cent this year and 2.0 per cent in 2007.

At a Glance…

2010 ◽  
Vol 212 ◽  
pp. F2-F2
Keyword(s):  
Euro Area ◽  
World Trade ◽  
World Economy ◽  
Chinese Economy ◽  
List Type ◽  
Us Economy ◽  
The Us ◽  
The World

The world economy will expand by 3.9 per cent in 2010 and 3.8 per cent in 2011.World trade will increase by 9.6 per cent this year and 5.7 per cent in 2011.The Chinese economy will grow by 9.8 per cent in 2010 and 9 per cent next year.Japanese GDP will expand by 2 per cent this year and 1.5 per cent in 2011.The US economy will grow by 2.9 per cent in 2010 and 2.7 per cent next year.The Euro Area will expand by 1.2 per cent this year and 1.8 per cent in 2011.

scholarly journals FOREIGN TRADE SPATIAL DYNAMICS AND PROMOTION OF AGRICULTURAL EXPORTS OF THE UNITED STATES OF AMERICA

2021 ◽  
Vol 2 (196) ◽  
pp. 17-25
Author(s):  
V.N. Minat ◽  
Keyword(s):  
United States ◽  
Foreign Trade ◽  
Agricultural Production ◽  
Spatial Dynamics ◽  
The United States ◽  
Agricultural Products ◽  
Agricultural Exports ◽  
Us Economy ◽  
The Us ◽  
The World

As part of the study of agricultural production, as one of the leading export-oriented sectors of the US economy, the dynamics of foreign trade in American agricultural products, which is objectively recognizable in the categorical and economic evolution of spatial patterns, is considered. The latter are considered in the context of the global regional structure of agricultural exports and imports of the United States in 1946–2019 and the features of stimulating the export of American agricultural products in the context of the main regions and countries of the world for the same period of time. Based on the synthesis of historical/evolutionary and spatial approaches, methodologically filled with methods of abstract-logical and statistical-economic analysis of official American statistics, the provisions on geo-economic conjuncture, expansionism and protectionism of US foreign trade in the world/global agricultural market are empirically proved.

scholarly journals Statistical Analysis of the Performance of a Big and Open Economy: The Case of the U.S.

2018 ◽  
pp. 10-17
Author(s):  
O. V. Zhuravliov ◽  
О. М. Simachova
Keyword(s):  
United States ◽  
Open Economy ◽  
Developing Economies ◽  
Negative Impact ◽  
The United States ◽  
Us Economy ◽  
The Us ◽  
The World ◽  
Macroeconomic Indicators ◽  
The Impact

The US economy is one of the richest and most diversified economies in the world and keeps its leadership in the global economy for the past 100 years. The United States is a global leader in computer technology, pharmaceuticals and the manufacture of medical, aerospace and military equipment. And although services make up about 80% of GDP, the US remains the second largest producer of industrial goods in the world and is a leader in research and development. President Donald Trump was elected in November 2016, promising a big gap with his predecessor’s regulatory, tax and trade policies. Therefore, the current socio-economic status of the USA and the possible ways of its development in the future are interesting for studying the impact on other economies, in particular, on the Ukrainian economy and the search for new and optimal ways of developing relations between the United States and Ukraine. Key macroeconomic indicators of the US economy in 2011–2018 are analyzed, demonstrating the influence of Donald Tramp’s new policy on changes in the indicators of the economy, the labor market, trade, etc., as well as possible ways of development in the coming years. The review of key macroeconomic indicators gives grounds for classifying the American economy as healthy one. Rates of GDP growth will remain in the range of 2 to 3%. These rates of growth in the world’s largest economy are callable to ensure a substantial increase in the global activity. But uncertainties in the politics may hinder global growth and have clearly negative impact on the investment growth in developed and developing economies.

Vaccines will drive financial markets over US politics

2020 ◽  
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
World Trade ◽  
Divided Government ◽  
Content Type ◽  
Us Economy ◽  
The Us ◽  
The World

Significance Divided government provides scope for volatility at a perilous time for the pandemic-ravaged US economy, but markets are putting greater weight on the prospect of a vaccine accelerating the global recovery. Tech stocks have fallen as investors take their gains and opt for 'reflation trades' predicated on a recovery in sectors hit hard by the pandemic. Impacts Apple, Amazon, Alphabet, Microsoft and Facebook make up over 20% of the US stock market; firm fundamentals guard against a sharp sell-off. China’s renminbi has risen to the highest to the dollar since the US-China tariff battle ramped up in early 2018; more strength is likely. China’s export orders grew only marginally in October and import growth slowed, signposting that the world trade recovery could plateau.

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