If future growth is to take a different path, it will require more than the usual mantra about taking advantage of low interest rates to fund infrastructure. Instead, we need to rethink the fundamental precepts that govern our understanding of how and why capitalist economies grow—both in terms of the ‘rate’ and the ‘direction’ of change. Key to this is a better understanding of what drives business investment, and the effect that public investment can have—not just ‘crowding-in’ investments that businesses may already have been considering, but actively stimulating the desire to make new investments they hadn’t yet considered. It is this ability of bold, strategic public investments to rouse what Keynes called the ‘animal spirits’ of business investors that is key.…
The good society is based on a public-private partnership.
Why Economic Recovery Requires Rethinking Capitalism
Mariana Mazzucato | RM Phillips chair in the Economics of Innovation at SPRU in the University of Sussex
5 comments:
People on both sides still caught up in the gold standard thinking of Marx's 'capitalism'... which the gold brought in with it an assumption of scarcity/shortages at best equilibrium rather than continuous surplus since we shit-canned the gold...
Shame...
Now all these people just keep wanting to chase the nebulous "growth!" concept which we dont even need...
Economics based on persistent growth is a form of cancer.
Well imo it is at least stupid...
The rate of growth has to at least equal the growth in population. The primary driver of growth has been population growth. The primary driver of productivity growth, which translates to higher living standard is technology, along with eduction. Improvement in health care and health care technology also increases population growth by reducing early mortality and lengthening life span.
As areas become more developed the rate of growth tends to decreased since the birth rate tends to decrease and development saturates the economy with the means to satisfy preferences. At this point growth needs to be manufactured by creating new desires and building in obsolescence, e.g., by changing styles.
A "public private partnership" means the end of your safe private world and the end of privacy. Go against the plan and you are a traitor and a saboteur. And all to cure the problem that does not exist.
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