Its been over a decade since the financial recession hit the USA and much of the world, towards the end of the last decade. Even now, severe economic imbalances remain which are pointing towards yet another devastating economic crisis. This has been highlighted in a new book recently released titled The Value of Everything: Making and Taking in the Global Economy. This has been penned down by noted business writer Mariano Mazzucato. She is the Founder and Director at the UCL Institute for Innovation and Public Purpose. In this book, she speaks about how there must be different metrics now used to gauge value. One such key pointer is how most of the financial sector is funding itself from only the FIRE model involving Finance, Insurance and Real Estate. Businesses should spend their earnings to invest in further research, corporate training and in production, rather than merely running their operations using stock market dividends. The next recession could be worse off thanks to the political stance now popular in several European countries as well as in USA. The concept of value extraction does no benefit to the ongoing discourse on further rising economic inequality.

Source:http://knowledge.wharton.upenn.edu/article/measure-economic-performance/

Uploaded Date:07 June 2019