Capitalism
Author – Prajwal Tapaswi
Money Manager Capitalism and the Coronavirus Pandemic: A Post-Keynesian Institutionalist Analysis of Inadequate Industrial Capacity.
WHALEN, C. J. LIANG, Y (2022) states that “Money Manager Capitalism” and how it is impacted by the Coronavirus pandemic, using a Post-Keynesian Institutionalist approach. The paper maintains that Money Manager Capitalism, based on the financial market priorities rather than the real industrial production, has aggravated pandemic effects. For example, it has led to the lack of capacity of industries.
The author argues that this money manager capitalism which has come into being has created a situation whereby the financial markets, rather than economic decisions, are in the driving seat and thus potentially prohibiting longer-term industrial planning and resilience. The crisis has revealed that the country has not put decisive emphasis on the ability to respond to the pressures the pandemic has posed, like shortage of basic products and drug supplies.
According to a Post-Keynesian Institutionalist point of view, the article underlines the need to redesign the economic policy aimed at supporting real production and industrial capacity rather than pursuing various financial goals. Involves a transformation from the short-term profit motives of financial market to strategies that boost the growth and timely recovery of industries that are crucial to green economy.
Moreover, the article stresses that the role of the government in the rectifying the incapacity of industrial power in this capitalism age is irreplaceable. Strategic public investment, financial market regulation, and the improvement of industrial capacity are included in policies aiming to fight adverse effects of financialization on industrial capacity.
The article presents in its last sentence the key challenge of restructuring the economic priorities and sectors in the wake of the COVID-19 pandemic. Through a process of countering the dominance of financial markets and maintaining a framework that promotes the real production of goods rather than just financial games, societies can be made more prepared to deal with future crises.
Rethinking corporate social responsibility under contemporary capitalism: Five ways to reinvent CSR.
Rebecca Chunghee Kim, (2022) states that the investigates CSR in modern capitalism by providing five approaches to reinventing CSR in the business context.
First, the article criticizes the CSR practices which usually emphasize on symbols and superficial as opposed to real results of social and environmental impact. It suggests an adoption of a new way of CSR through infusion of sustainability principles in the core business strategies of an organization.
Secondly, the article highlights the role of coordinating CSR activities with the societal and environmental issues that are main features of modern capitalism. This deals with the problems of climate change, income inequality, and social justice by having a proactive and genuine interaction.
Moreover, the article also advocates for transparency and accountability in the practices of Corporate Social Responsibility. It implies that firms should be more open about their social and environmental performance which includes, but is not limited to, reporting financial performance.
Finally, the article points out the importance of working together, which means partnerships between business, government, and civil society organizations are essential to effectively tackle social and environmental issues. It asserts that collective actions are necessary for creating a change in systems and getting a desired impact.
Last but not least, the piece urges a reassessment of the role of corporations in the society and the promotion of an approach to business that focuses more on stakeholders. It involves realizing the interdependency between business success and the welfare of employees, communities, and environment.
Slavery and capitalism.
STELZNER.M, (2020) states that by tracing the origin of capitalism and its association with slavery and contrasting it with dominant narratives that are mostly interested to keep the two systems separate. Stelzner advocates the view that capitalism grew up in intimate connection with the exploitation of enslaved workers, especially in the colonial and early modern capitalist societies. The author develops an argument example by example and theory by theory, explaining how slavery served as a cornerstone for the development of capitalism, which was underlying the accumulation of wealth and the expansion of global trade networks.
Besides, Stelzner considers the role of slavery in a wide spectrum of capitalist economies, including labor markets, production procedures and distribution of wealth. The article reveals this process via indisputable factual evidence and theoretical analysis. Capitalist modes of production and consumption resulted from this commodification of slaves as it evolved. Additionally, the craze of slavery is continued in the modern capitalist societies as the racial inequalities and economic disparities go in the fast way.
The article moreover develops the topic of resistance and social movements as the bloodless oppositions to the syndicate of slavery and capitalism. Stelzner draws the attention of the agency and voice of both the enslaved people and the labor activists. Stelzner also underlines the importance of these three historical moments in the ongoing struggle for social justice in capitalist societies.
Finally, “Slavery and Capitalism” comes up with an in-depth and multilayer understanding of the uncomplicated connection between two key economic systems. Through the interrogation of historical and the contemporary dynamics, Stelzner`s work advances a deeper understanding of the legacy of slavery as well as the broader implications of this legacy in relation to the current debates on capitalism, labor, and social justice.
New Varieties of State Capitalism: Strategic and Governance Implications.
MUSACCHIO, A.; et al, (2015) state it right from the outset by discussing the idea of the state capitalism and the ways in which it evolves in different countries and regions. They assert that there is a flaw in definition of traditional-state capitalism, for it does not reflect the complex and heterogenous interplay of state and private sector. Instead, they propose a framework that identifies four distinct varieties of state capitalism: colonial, bilateral, developmental, and adversarial.
Examining the empirical studies and case studies from different countries, Musacchio, Lazzarini, and Aguilera examine the impact of each type of state capitalism that firms encounter within such systems. They analyze how public intervention in the economy affects strategy formulation of organizations, their investment decisions, innovation activities and risk management practices among others. In addition, the authors consider ways in which state-owned enterprises (SOEs) and private firms interact with the complexities and possibilities of state capitalism and examine how they navigate the emerging institutional framework.
Along with strategic issues, the paper brings up the topic of ‘state capitalism’ governance problems. Musacchio, Lazzarini and Aguilera express that state ownership and intervention in economy impacts on corporate governance mechanisms such as board structures, executive compensation and shares rights. They emphasize the necessity of adaptive governance structures that are well-designed to take into account state capitalist systems and meanwhile guarantee the accountability and transparency.
Shrinking Capitalism
BOWLES, S.; CARLIN, W. (2020) states that right from the outset by discussing the idea of the state capitalism and the ways in which it evolves in different countries and regions. They assert that there is a flaw in definition of traditional-state capitalism, for it does not reflect the complex and heterogenous interplay of state and private sector. Instead, they propose a framework that identifies four distinct varieties of state capitalism: colonial, bilateral, developmental, and adversarial.
Examining the empirical studies and case studies from different countries, Musacchio, Lazzarini, and Aguilera examine the impact of each type of state capitalism that firms encounter within such systems. They analyze how public intervention in the economy affects strategy formulation of organizations, their investment decisions, innovation activities and risk management practices among others. In addition, the authors consider ways in which state-owned enterprises (SOEs) and private firms interact with the complexities and possibilities of state capitalism and examine how they navigate the emerging institutional framework.
Along with strategic issues, the paper brings up the topic of ‘state capitalism’ governance problems. Musacchio, Lazzarini and Aguilera express that state ownership and intervention in economy impacts on corporate governance mechanisms such as board structures, executive compensation and shares rights. They emphasize the necessity of adaptive governance structures that are well-designed to take into account state capitalist systems and meanwhile guarantee the accountability and transparency.
Learning from Economic Experiments in China and India.
KHANNA, T. (2009) emphasizes that the current global financial crisis has brought attention to these dimensions, which have been overlooked in management literature. China exhibits a strong state that forces organizations to coexist with it, blurring the lines between public and private sectors. On the other hand, India showcases a vibrant civil society historically in opposition to capitalist excesses. Khanna suggests that these contrasting models offer valuable lessons for management scholars and the business world at large, encouraging learning from economic experiments unfolding worldwide.
The author highlights the significance of understanding the U.S. economic model in the context of its strengths, shortcomings, and the new alternatives available globally. Khanna draws on over a decade of research in China and India, emphasizing the compelling reasons to learn from these countries due to their large size, historical backgrounds, and different development trajectories. The document delves into the roles of the state and civil society in both countries, offering insights into the state’s influence on entrepreneurship, the role of media, and the engagement of businesses with civil society.
Furthermore, the document examines the ubiquity of the state in China, where the government is viewed as the entrepreneur, aligning the incentives of government officials with economic wealth creation. In contrast, India’s dysfunctional state is shown to have limitations, hindering the efficiency and autonomy of state-owned enterprises. The discussion also addresses the role of civil society, illustrating the muted civil society in China and the proactive engagement between businesses and civil society in India. Overall, the document emphasizes the necessity for the U.S. and other countries to learn from the economic experiments and variations in the Chinese and Indian models, especially in dealing with state influence and civil society engagement. In essence, the document provides a thought-provoking analysis of the economic models of China and India, shedding light on the contrasting dynamics of the state and civil society in both countries
U.S. Capitalism: A Tarnished Model
WHITLEY.R, (2009) states that by contextualizing the developmental stages of U.S. capitalism beginning from the industrial revolution up until the present day. He admits that the United States has a great deal to present in terms of stimulating innovation, economic growth and prosperity. Yet, he too brings to light the obstacles as well as criticisms against the U.S. model among which there are issues of income distribution, corporate governance breaches and ecological sins.
Author critically analyzes U.S. capitalism in comparison to other economic systems and looks into the institution structures that are widely found in the U.S. but rarely in other countries. The author discusses the government involvement in supervision of the markets and setting the social policies, while also describing the positive and the negative effects.
Furthermore, he is concerned about the effects that the 2008 financial crisis and economic recession had on the USA’s capitalist model, and its reputation. He makes the case that the crisis revealed fundamental problems and weaknesses inherent to U.S. economic system, hence its failures in upholding credibility and elevated status in the world.
In the end, Author equips his statement with a sophisticated evaluation of American capitalism, pointing to its splendid achievements and admitting some of its flaws. Critical analysis of the strengths and weaknesses of U.S. model of modern capitalism is offered by Whitley thereby, resulting in the advanced knowledge base regarding the complexities and challenges involved in capitalist economy.
Thin Political Markets: THE SOFT UNDERBELLY OF CAPITALISM.
RAMANNA.K, (2015) emphasises many times the contemporary economic theory forgets about the influence of the politics on the markets and economic results. He puts forward the idea of “thick political markets” as areas where political influence is concentrated thus extending illicit economic activities like rent-seeking behavior and undermining economic efficiency and fairness.
In their article, the authors provide a number of cases of political market thinness (e.g. finance sector where regulatory capture by the powerful interests may lead to competition distortions and increase the systemic risk). Lobbying, and campaign finance also affect the shaping of public policy and create uneven playing fields especially in Healthcare and Energy sectors.
It is highlighted that there is requirement of more transparency, and accountability in political processes to counter negative impacts of thin political markets. He proposes reforms like campaign finance reform, tighter lobbying restrictions, and more effective antitrust rules for the sake of market fairness and efficiency too.
In general, the article adopts for deeper comprehension of the dynamics between politics and capitalism and advises the key players to consider the issues posed by thin political markets in order to uphold the economic system’s durability and integrity.
Rethinking Value Chains Tackling the Challenges of Global Capitalism
KENNEDY.S, (2022) states that the value chain evolution into the account of globalization and underlines its role in forming the ‘wealth, power and opportunity distribution’ among the regions and sectors. This article concerns with the fact that the traditional ways of value chains are generally efficiency- and cost-oriented, which are considered as issues of labour standards, environmental sustainability and inequality in economy.
Author suggests to re-encode value chains in way that they to not only support economic growth but also include social and environmental aspects. This involves a transformation to a type of business that almost revolves around inclusive issues and sustainable practices, which prioritize fair wages, safe working conditions and environmental stewardship in the supply chain.
Furthermore, the piece stresses on the role of stakeholders, such as governments, corporations, employees, and civil society organizations, in realizing impactful transformation within the value chains. Kennedy argues that it is important to bring these stakeholders to one table to create and implement solutions to the challenges global capitalism throws at us.
On the whole, the article recommends a whole system approach to value chain management that to balance economic goals ahi with social and environmental considerations. Through looking at it in this fashion of value chains, article explains that it is possible to net a more equitable and sustainable end result even within the confines of global capitalism.
Six forms of hierarchy for a theoretical analysis of capitalism.
SINDZINGRE, A. N.; TRICOU, F, (2022) states that contrary to this traditional economic analysis, article suggest that the derogatory dimensions of capitalism are not taken into consideration. They propose six forms of hierarchy that shape capitalist economies: market strata, organizational strata, knowledge strata, monetary strata, social strata, and the political strata.
The authors discuss how hierarchy works in capitalist societies considering how this hierarchy affects distribution of power, resources, as well as opportunities. They expose the relationship which is dynamic between these hierarchies and their economic outcomes, such as income inequality, social mobility, and economic stability.
The article gives prominence to hierarchies in economic theory and policy-making, respective to the Capitalism and its problems examination. Article propose that re- evaluation of hierarchy could lead to the development of strategies that promote higher equity, increased efficiency, and sustainability on the basis of capitalism.
It concludes that the article is of great importance in the discussion of the essence of capitalism because it fuses hierarchal forms in the economic analysis. Using diverse approaches to hierarchies as an analytic tool, the authors seek to enrich our comprehension of capitalism and lay the foundation for provisions of resilient and inclusive economic system.
Conclusion:
The collection of articles delves into various aspects of capitalism, providing insightful analyses and recommendations for rethinking and restructuring economic models to address the challenges posed by contemporary capitalism. Whalen and Liang’s paper explores the impact of “Money Manager Capitalism” on industrial capacity, emphasizing the need for economic policies that prioritize real production over financial goals, while stressing the irreplaceable role of government intervention in rectifying industrial capacity shortcomings. Rebecca Chunghee Kim’s article rethinks corporate social responsibility (CSR) in modern capitalism, advocating for a shift towards genuine social and environmental impact, transparency, accountability, and collaboration between business, government, and civil society. Furthermore, Stelzner’s work sheds light on the intimate connection between capitalism and slavery, emphasizing the historical and contemporary implications of this association, and highlighting the significance of resistance and social movements in the struggle for social justice within capitalist societies. Musacchio, Lazzarini, and Aguilera propose a framework that identifies four distinct varieties of state capitalism and examine the impact of each type on firms and corporate governance mechanisms, emphasizing the need for adaptive governance structures to navigate the complexities of state capitalist systems. Bowles and Carlin provide a comprehensive analysis of the developmental stages of U.S. capitalism, acknowledging its achievements while critically examining issues of income distribution, corporate governance breaches, and ecological impacts, particularly in the aftermath of the 2008 financial crisis. Khanna’s work emphasizes the valuable lessons that can be learned from contrasting economic experiments in China and India, highlighting the roles of the state and civil society in both countries and their implications for global economic models. WHITLEY.R critically compares U.S. capitalism to other economic systems, examining government involvement in market supervision and social policy setting, and discussing the positive and negative effects of these structures. Additionally, the document delves into the impact of the 2008 financial crisis and economic recession on the U.S. capitalist model, revealing fundamental weaknesses and failures in upholding credibility. Ultimately, the document offers a sophisticated evaluation of American capitalism, acknowledging its achievements while also admitting to its flaws, providing an advanced understanding of the complexities and challenges within the capitalist economy.Ramanan’s article on “Thin Political Markets” examines the impact of politics on markets and economic outcomes, advocating for transparency, accountability, and reforms to counter the negative effects of thin political markets on market fairness and efficiency. Kennedy’s piece rethinks value chains in the context of globalization, urging a shift towards inclusive and sustainable practices that prioritize fair wages, safe working conditions, and environmental stewardship, while stressing the importance of stakeholder collaboration in realizing impactful transformations within value chains. Lastly, Sindzingre and Tricou’s theoretical analysis of capitalism proposes six forms of hierarchy that shape capitalist economies, emphasizing the dynamic relationship between these hierarchies and their economic outcomes, and advocating for the re-evaluation of hierarchy to promote higher equity, increased efficiency, and sustainability within capitalism. Overall, the collection of articles offers a multifaceted analysis of capitalism, addressing various dimensions such as industrial capacity, corporate social responsibility, state capitalism, historical associations with slavery, U.S. capitalism, political markets, value chains, and hierarchies within economic theory. The articles collectively advocate for a rethinking and restructuring of economic models, emphasizing the need for policies and practices that prioritize real production, social and environmental impact, transparency, accountability, stakeholder collaboration, and equity within capitalist economies.
References:
BOWLES, S.; CARLIN, W. Shrinking Capitalism. AEA Papers & Proceedings, [s. l.], v. 110, p. 372–377, 2020. DOI 10.1257/pandp.20201001. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=e7aa1ecd-20a5-35c6-96b2-8722b8b4ef73. Acesso em: 16 fev. 2024.
KENNEDY, S. Rethinking Value Chains Tackling the Challenges of Global Capitalism. British Journal of Industrial Relations, [s. l.], v. 60, n. 4, p. 948–950, 2022. DOI 10.1111/bjir.12699. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=e340bb11-f83e-3c77-858d-a3d5d2f5093b. Acesso em: 16 fev. 2024.
KHANNA, T. Learning from Economic Experiments in China and India. Academy of Management Perspectives, [s. l.], v. 23, n. 2, p. 36–43, 2009. DOI 10.5465/AMP.2009.39985539. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=1a6b0eed-43df-34fa-a463-181d47379a03. Acesso em: 16 fev. 2024.
MUSACCHIO, A.; LAZZARINI, S. G.; AGUILERA, R. V. New Varieties of State Capitalism: Strategic and Governance Implications. Academy of Management Perspectives, [s. l.], v. 29, n. 1, p. 115–131, 2015. DOI 10.5465/amp.2013.0094. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=0c87af5c-37a7-36ef-91eb-e9b994691822. Acesso em: 16 fev. 2024.
RAMANNA, K. Thin Political Markets: THE SOFT UNDERBELLY OF CAPITALISM. California Management Review, [s. l.], v. 57, n. 2, p. 5–19, 2015. DOI 10.1525/cmr.2015.57.2.5. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=17cfc890-55c1-34fa-b7d7-29c6e7bd1a25. Acesso em: 16 fev. 2024.
Rethinking corporate social responsibility under contemporary capitalism: Five ways to reinvent CSR. Business Ethics, the Environment & Responsibility, [s. l.], v. 31, n. 2, p. 346–362, 2022. DOI 10.1111/beer.12414. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=ba5b7d0f-984a-3061-a538-78c9377ce95b. Acesso em: 16 fev. 2024.
SINDZINGRE, A. N.; TRICOU, F. Six forms of hierarchy for a theoretical analysis of capitalism. Journal of Post Keynesian Economics, [s. l.], v. 45, n. 2, p. 210–245, 2022. DOI 10.1080/01603477.2021.1913754. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=8abf1e98-7d48-3efe-8c27-277ea59b0d6d. Acesso em: 16 fev. 2024.
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WHALEN, C. J.; LIANG, Y. Money Manager Capitalism and the Coronavirus Pandemic: A Post-Keynesian Institutionalist Analysis of Inadequate Industrial Capacity. Journal of Economic Issues (Taylor & Francis Ltd), [s. l.], v. 56, n. 2, p. 508–515, 2022. DOI 10.1080/00213624.2022.2061832. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=58407cfa-c7e3-35c3-bed1-8b67c74c792d. Acesso em: 16 fev. 2024.
WHITLEY, R. U.S. Capitalism: A Tarnished Model? Academy of Management Perspectives, [s. l.], v. 23, n. 2, p. 11–22, 2009. DOI 10.5465/AMP.2009.39985537. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=e24bc31b-fed9-3fbb-b9d7-1c71da904c26. Acesso em: 16 fev. 2024.