Premium Essay

Book Review : Capital in the 21 Century

In: Business and Management

Submitted By sypark
Words 340
Pages 2
This book points out that wealth inequality inheres in the 21 century capitalism. The author, Thomas Piketty, says the polarization of wealth has become more serious since the return on capital is bigger than the economic growth rate. Simply put, the speed at which money makes money is much greater than the speed at which labor makes money. As a result, the faster accumulation of capital is the main culprit of inequality.

South Korea is no exception. Despite of economic growth, real wage is getting smaller with inflation. It's because wages are not keeping up with inflation. Moreover, real wage has been recently far below labor productivity in Korea. That means the quality of workers' lives didn't get any better. Why doesn't firm performance lead to worker's compensation? Where has the rest of the income gone? Most of it comes to the company, and it is called as capital income.

It is not that difficult to imagine how dangerous this problem would be, when it persists and gets worse. Those who buy products are not entrepreneurs, but customers. If customers do not have enough money to purchase things, companies would not earn money too. So, it could destroy companies in the end. That is, focusing too much on growth and ignoring distribution paradoxically will hurt growth itself. Therefore, the author says that government has to do something to reduce the level of inequality.

Thomas Piketty suggests strengthening progressive tax. But I have some doubts about it. First one is that it isn't that easy to start the tax system, because it is a highly political issue. Second, it is very hard to decide the optimal level of distribution. We don't know where is a balance between growth and distribution. Lastly, I agree that companies should pay their employees enough for their contribution to firm's growth and it can be the key to more growth again. However,...

Similar Documents

Premium Essay

Achieving and Maintaining Strategic Competitiveness in the 21st Century: the Role of Strategic Leadership

...Achieving and Maintaining Strategic Competitiveness in the 21st Century: The Role of Strategic Leadership Author(s): R. Duane Ireland and Michael A. Hitt Source: The Academy of Management Executive (1993-2005), Vol. 19, No. 4, Classic Articles from AME (Nov., 2005), pp. 63-77 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/4166206 Accessed: 10-05-2015 07:37 UTC REFERENCES Linked references are available on JSTOR for this article: http://www.jstor.org/stable/4166206?seq=1&cid=pdf-reference#references_tab_contents You may need to log in to JSTOR to access the linked references. Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at http://www.jstor.org/page/ info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academy of Management Executive (1993-2005). http://www.jstor.org This content downloaded from 203.101.161.82 on Sun, 10 May 2015 07:37:52 UTC All use subject to JSTOR Terms and Conditions I Academy of Management Reprinted from 1999, Vol. 13, No.......

Words: 12550 - Pages: 51

Premium Essay

Management & Strategy Gurus and Masters

...http://www.easy-strategy.com/strategy-gurus.html Home Sitemap Contact Us Articles Speaker Seminars Consulting Negotiation War Room Osama El-Kadi Easy Strategy Videos Stories Gurus 36 Strategies Art of War News Build a Site My Books History Management & Strategy Gurus and Masters The complete A to Z Guide ABCDEFGHIJKLMNOPQRSTUVWXYZ A point of clarification before you start your journey with the gurus and masters: a Guru is a person who is very knowledgeable and teaches a particular strategy. A Master is a practitioner of the art of strategy in life and in business. Management & Strategy Gurus Main Guru's Index ABCDEFGHIJKLMNOPQRSTUVWXYZ 1 of 41 9/21/2014 3:38 PM http://www.easy-strategy.com/strategy-gurus.html Military Gurus Blog Ask me! Newsletter Clients Privacy Policy Motivational [?]Subscribe To This Site A Igor Ansoff Igor Ansoff The father of Strategic management Igor Ansoff (1918-July 14, 2002) was an applied mathematician and business manager. He is known as the father of Strategic management. He was a distinguished professor at United States International University (now Alliant International University) for 17 years, where several institutes continue his work in strategic management research. Igor was recognized worldwide as the Pioneer and Father of Strategic Management. He was the first management strategy guru to recognize the need for strategic planning for firms operating in the increasingly complex and turbulent......

Words: 8421 - Pages: 34

Free Essay

Investment Banking

...Investment Banking: Past, Present, and Future by Alan D. Morrison, Saïd Business School, University of Oxford and William J. Wilhelm, Jr., McIntire School of Commerce, University of Virginia investment banks are changing fast. Forty years ago the industry was dominated by a few small partnerships that made the bulk of their income from the commissions they earned floating securities on behalf of their clients. Today’s investment banks are huge full-service firms that make a substantial proportion of their revenues in technical trading businesses that started to attain their current prominence only in the 1980s. The CPI-adjusted capitalization of the top ten investment banks soared from $1 billion in 1960 to $194 billion in 2000. Between 1979 and 2000, the number of professionals1 employed by the top five investment banks (ranked by capitalization) rose from 56,000 to 205,000.2 The enormous upheavals documented in the previous paragraph raise a number of difficult questions. What have the investment banks of today got in common with their predecessors? Is it possible to draw any meaningful parallels between businesses that today call themselves investment banks and the investment banks of 20, 40, or even 100 years ago? What is the source of the recent changes to the investment banking landscape, and can we say anything about the likely future direction of the industry? These questions point to a more fundamental one: namely, if investment banks did not exist, would we need to......

Words: 11416 - Pages: 46

Free Essay

Performance of Textile Industry in Industrialisation: a Study with Reference to India

...PERFORMANCE OF TEXTILE INDUSTRY IN INDUSTRIALISATION: A STUDY WITH REFERENCE TO INDIA INTRODUCTION Prosperity of any nation is extremely difficult without industrial development – is a well established truth for all the economies – developing or developed. Economic development and industrialization have became so closely integrated with each other that progress of an economy is now accessed from the success it has achieved in transformation from agricultural set up into a industrial set up. Through industrialization a situation is created whereby many industries are set up rapidly and ultimately backward areas are converted into economically developed areas and backward economies into developed economies. Industrialization, infact is a composite term which involves a number of structural changes such as changes in the production techniques, factor intensities, industrial employment and output. Industrialization is not only a way to increase output or national income but is a means of introducing modern technology and changing ways of life and finally the structure of the economy because of its self-reinforcing quality. But the all above cannot be executed without a well planned industrial policy. The industrial polity provides direction to the pace of industrialization and industrial development. Hence, to industrialize the country, India too, framed industrial policy which was amended, modified and reoriented several times. The First Industrial Policy was framed in......

Words: 6332 - Pages: 26

Premium Essay

Finance London Paris

...Investor: Foreign & Colonial Investment Trust 1880-1913 David Chambers and Rui Esteves∗ September 2011 Abstract: The Foreign and Colonial Investment Trust (FCIT) is the oldest surviving closed end fund in the world today. Its early success was related to its identification of a missing market, namely, the provision of a wholesale diversified investment vehicle for the investing public. Whilst much research has been conducted on aggregate international capital flows in this period, little work has been undertaken on the prime investment institutions. This micro-study seeks to fill this gap by undertaking detailed quantitative analysis of the leading investment trust investing widely in emerging markets during the first era of financial globalisation before WWI. The history of this flagship investment trust over more than three decades up to 1913 provides an insight into the relative success of this institutional innovation as well as into the risk and returns of investing in global emerging markets over a century ago. ∗                                                              David Chambers (d.chambers@jbs.cam.ac.uk) is at Judge Business School, Trumpington Street, Cambridge CB2 1AG, United Kingdom. Rui Esteves (rui.esteves@economics.ox.ac.uk) is at the Dept of Economics, Oxford University, Manor Rd Building, Oxford OX1 3UQ, United Kingdom. We thank Foreign and Colonial for access to their archives and Ben Chabot, Christopher Kurz and Mary O’Sullivan for......

Words: 12264 - Pages: 50

Premium Essay

Kenneth Rogoff

...June 10, 2014 KENNETH S. ROGOFF CURRICULUM VITAE Economics Department, Littauer Center, Harvard University, Cambridge MA 02138-3001, 617495-4022, FAX: 617-495-7330, email: krogoff@harvard.edu Webpage: http://scholar.harvard.edu/rogoff Birth date: March 22, 1953 Married to Natasha Lance Rogoff, two children (Gabriel and Juliana) EDUCATION Massachusetts Institute of Technology, Ph.D., February 1980 Doctoral Dissertation: Essays on Expectations and Exchange Rate Volatility. Yale University, B.A./M.A. summa cum laude, Honors in Economics, May 1975. PROFESSIONAL POSITIONS Professor of Economics, Harvard University, September 1999 – present; Thomas D. Cabot Professor of Public Policy, January 2004 – present. Chief Economist and Director of Research, International Monetary Fund, 2001–2003. Director, Harvard Center for International Development, 2003–2004. Professor of Economics and International Affairs, Princeton University, 1992–94; Charles and Marie Robertson Professor of International Affairs, 1995–1999. Professor of Economics, University of California at Berkeley, 1989–1991. Associate Professor of Economics, University of Wisconsin-Madison, 1985–1988. Economist, International Finance Division, Board of Governors of the Federal Reserve System, 1980–1983; Section Chief, Trade and Financial Studies Section, 1984. Economist, Research Department, International Monetary Fund, Oct. 1982 – Sept. 1983. VISITING POSITIONS BP-LSE Visiting Centennial Professor, London......

Words: 3919 - Pages: 16

Premium Essay

Managment

...R. L. (2003) Management, (6th edition), Thomson South-Western. Grey C & Willmott, H. (2005) (Eds) Critical management studies, Oxford: Oxford University Press. Grint, K. (1991) The Sociology of Work: an introduction. Cambridge: Polity Press. Handel, M.J. (2003) The Sociology of Organizations: Class, Contemporary and Critical Readings. Thousand Oaks: Sage. Mullins, L. (2011) Management and Organisational Behaviour, 9th ed. Harlow: Prentice Hall. Pugh, D. (1990) Organization Theory, 3rd ed. London: Penguin Books. Other editions available. Pugh, D. and Hickson, D. (1996) Writers on Organizations, 5th ed. London: Penguin Books. Other editions available. Thompson, P. and McHugh, D. (2009) Work Organisations: A Critical Approach, 4th ed. Basingstoke: Palgrave Macmillan. Watson, T. (2011) Sociology, Work and Industry, 6th ed. London and New York: Routledge. Some Relevant Journals in Bangor University 1. Academy of Management Review (AM) 2. Business History Review (Cambridge University Press) 3. British Journal of Industrial Relations (Wiley-Blackwell) 4. British Journal of Management (Wiley-Blackwell) 5. British Journal of Sociology (Wiley-Blackwell) 6. Human Relations (Sage) 7. Human Resource Management Journal (Wiley-Blackwell) 8. International Journal of Human Resource Management (Routledge) 9. Journal of Management Studies (Wiley-Blackwell) 10. New Technology Work and Employment (Wiley-Blackwell) 11. Sociology (Sage) 11. Work, Employment and Society......

Words: 1826 - Pages: 8

Free Essay

International Trade

...University Press, 719 pages, $35. In Joseph A. Schumpeter’s (1883-1950) encyclopedic History of Economic Analysis, Schumpeter began by proclaiming that histories of economics should confine themselves to economic analysis, which he defined as “the analytic or scientific aspects of economic thought" (1954: 1). Schumpeter then proceeded to ignore his own edict, for over 1000 small-print pages. Having preached analysis-only Schumpeter practiced more ecumenically, weaving together intellectual history, biography, and economic sociology. Indeed, Schumpeter spent most of his last decade writing the 800,000 words of the ferociously erudite History, and thereby failing to complete a long-planned work of economic analysis. Thomas McCraw’s splendid new book brilliantly illuminates this Schumpeterian paradox, and the many others that made Schumpeter, as Phillip Mirowski put it, “a living, breathing contradiction” (1994: 5). Prophet of Innovation is not just a beautifully drawn portrait of Schumpeter’s life and times, it is also a distinguished business historian’s meditation on the two opposed cultures of political economy post-1870: history and theory. The Prophet of Innovation, among its other accomplishments, tells the story of how a great and productive intellect wrestled with the two-cultures problem in political economy. In the work of Schumpeter, McCraw finds the very personification of political economy’s struggle between history and theory. Just as Schumpeter’s work......

Words: 2820 - Pages: 12

Premium Essay

Babylon and the Old Empire

...Research Paper The Babylonian Empire and the Old Testament Submitted to Dr. Curtis Fitzgerald, Ph.D, In partial fulfillment of the requirements for the completion of the course OBST 520 LUO (Summer 2014) Old Testament Orientation II Liberty Baptist Theological Seminary Marcus Banks-Bey_L2444950 June 29, 2014 Thesis Statement This research paper will discuss, and review the history of the Babylion Empire, its rulers, and the Empire’s influential relationship upon some of the major events which developed within Old Testament literature. Introduction Through my research, it is my intent to identify significant points within the history of the Babylion Empire, including its origins, development, expansion, eventual decline, and why it became a focal point of many of the major events of the Old Testament. From the Great Empire of Akkad, Babylon became a major seat of learning, culture, and technology. More than simply a city-state of defiance, and sinful practices, Babylon’s influence, very often viewed through a negative scholarly lens, shaped the history of Asia Minor, Northern Africa, and the world when approached from a biblical standpoint. As such, Babylon remains a critical, powerful nation in relation to its nation-state of Israel, and Old Testament history. Nimrod The Cushite The first nation-state identified within contemporary Biblical literature is the land that is “Ethiopia”, as......

Words: 3302 - Pages: 14

Premium Essay

Asian Miracle

...Asian Economic Miracle: The Wisely Chosen Economic Policies and The Economic Trend of 20th Century Van Nguyen Keystone College Abstract: Asian economic miracle refers to three groups of East Asian countries making miracle in transforming their economies from the third world to the first world ranking. There are three generations of Asian miracle. Starting with Japan, the first generation of what called Asian miracle, following with the second generation including South Korea, Hong Kong, Singapore, and Taiwan, and final generation consists of some Southeast Asian countries such as Thailand, Malaysia. This paper is going to talk about the second generation of Asian economic miracle. By showing their economic achievement, illustrating their economic policies, and analyzing how the economic trend of 20th century reflected on those policies, this paper will argue that Asian miracle was the result of the wise choices of how to manage an economy. Furthermore, developing countries should learn the lessons of how to choose the right economic policies to make economic miracle. Asian Economic Miracle: The Wisely Chosen Economic Policies and The Economic Trend of 20th Century Introduction According to the East Asian Miracle (EAM, World Bank, 1993), “East Asia has a remarkable record of high and sustained economic growth. From 1965 to 1990 the twenty-three economies of East Asia grew faster...

Words: 6857 - Pages: 28

Premium Essay

Amazon in the Year 2000

...developing strong brand equity on a global scale, developing direct relationship with wholesalers allowing them to reduce inventory shipping/holding costs supported by an excellent logistic system, which permitted them to deliver any and every product fast. They also started up this venture when the Internet market was just emerging, therefore allowing them to be one of the pioneers of this business. Amazon also pursued a strategy to incur huge loses in the current time period, in order to gain profits for the future “high the risk, higher the return”. The company chose to go down this route primarily to gain majority of the market share in the online book-selling sector. These strategies however raise a question as to why and how Amazon is performing while implementing these strategies. Are they invincible or just ‘cooking books” and becoming another Enron. Significant concerns go towards the brand equity, which is an intangible asset, however the company places dedicates majority of the profitability to this aspect of the venture. Another question, which concerns Amazon is the barrier to new entrants, as mentioned in the case at the given period the new entrants could easily setup a similar business and compete with Amazon, as at that period of time, the sophistication of infrastructure was not present. A major concern associated with this issue is that of the stock market, if another competitor set up shop the stock market would become very volatile in terms of Amazon......

Words: 918 - Pages: 4

Premium Essay

A Flat World

...XLV (March 2007), pp. 83–126 A Flat World, a Level Playing Field, a Small World After All, or None of the Above? A Review of Thomas L. Friedman’s The World is Flat EDWARD E. LEAMER∗ Geography, flat or not, creates special relationships between buyers and sellers who reside in the same neighborhoods, but Friedman turns this metaphor inside-out by using The World is Flat to warn us of the perils of a relationship-free world in which every economic transaction is contested globally. In his “flat” world, your wages are set in Shanghai. In fact, most of the footloose relationship-free jobs in apparel and footwear and consumer electronics departed the United States several decades ago, and few U.S. workers today feel the force of Chinese and Indian competition, notwithstanding the alarming anecdotes about the outsourcing of intellectual services. Of course, standardization, mechanization, and computerization all work to increase the number of footloose tasks, but innovation and education work in the opposite direction, creating relationship-based activities—like the writing of this review. It may only be personal conceit, but I imagine there is a reason why the Journal of Economic Literature asked me to do this review. 1. Prologue hen the Journal of Economic Literature asked me to write a review of The World is Flat: A Brief History of the Twenty-First Century (Farrar, Straus, and Giroux 2005) by Thomas Friedman, I responded with enthusiasm, knowing it wouldn’t take much......

Words: 25516 - Pages: 103

Free Essay

History of Accounting

...DEVELOPMENT OF CONCEPTS OF CAPITAL AND INCOME IN FINANCIAL REPORTING IN THE NINETEENTH CENTURY Calculation, Context and Consequence THOMAS REGINALD (Tom) ROWLES B.Ec (Hons), Dip.Ed (Monash) A THESIS SUBMITED FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN THE SCHOOL OF ACCOUNTING AND LAW OF RMIT UNIVERSITY, MELBOURNE, VICTORIA, AUSTRALIA ii DECLARATION I certify that: Except where due acknowledgement has been made, this thesis is mine alone; and The work has not been submitted previously, in whole or part, to qualify for any other academic award; and The content of the thesis is the result of work that has been carried out since the official commencement date of the approved research programme. THOMAS R. ROWLES iii TABLE OF CONTENTS Chapter Introduction 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Introduction Purpose of the Study Sombart’s Hypothesis An Alternative Model; Entrepreneurial Decision-making Context: The Industrial Revolution and ‘Profit’ The Changing Nature of ‘Investment’ The Great Depression of 1873-96 Intellectual Introspection Irving Fisher and the Conception of Capital and Income 17 17 17 23 25 26 30 32 34 34 35 36 38 38 38 39 43 46 49 50 51 54 55 1.10 Research Issues Identified 1.11 Summary Derivation of Research Issues 2.1 2.2 Introduction Evidence from Extant Accounts 2.2.1 Fixed Assets in Mercantile Accounting 2.2.2 The East India Company 2.2.3 Fixed Assets and Early Industrial Accounting 2.2.4 Capital Asset Accounting After......

Words: 130630 - Pages: 523

Premium Essay

France vs Uk Policy Changes Post Credit Crunch

...Effects of credit crunch/policy within the last ten years on political economy decisions in two countries: the UK and France. Introduction: The UK and France are two leading Western European countries having the fifth ($2.9 trillion) and sixth ($2.8 trillion) largest economies respectively. They are both apart of the European Union in which France was a founding member with the UK later joining in 1973. It presently gives them the opportunity to have a single market with all twenty-eight-member states. But their similarities do not stop there with both countries sharing similar statistics in population (UK – 64.1m, France – 66.3m) as well as a similar labour force of around 30 million. However, there are several major differences between the two countries including the currencies they use; France adopted the euro in 1999 whilst the UK opted out of the Maastricht Treaty retaining the British Pound. But the most interesting difference is the way each country handles their economic policy in such contrasting fashion. This paper looks to show which policies were implemented by each government and the economic theories behind them. Political Economy Comparison: 1) State Ownership UK * The David Cameron administration since 2010 has been fast to privatise and sell off state owned companies. They have recently given an IPO to Royal Mail and are keen to sell other assets including its equity in URENCO. Furthermore, from early January ‘under a new Treasury scheme,......

Words: 1883 - Pages: 8

Premium Essay

Submission Paper

...strategic management. However, most literature has not clearly linked organizational learning with sustainable competitive advantage. This paper, therefore, explores and discusses the role of organizational learning in helping business firms to achieve sustainable competitive advantage. Specifically, it deals with how organizational learning process can be used to develop knowledge resources and capabilities that lead to sustainable competitive advantage. The main method used is analysis and integration of theories to develop a conceptual model. This paper proposes that, through organizational learning a firm can develop hard to imitate knowledge resources and capabilities (human capital as well as organizational capital) that create value which in turn lead to superior performance. INTRODUCTION In the 21 century business landscape, firms must compete in a complex and challenging context that is being transformed by many factors from globalization, frequent and uncertain changes to the growing use of information technologies (DeNisi, Hitt and Jackson, 2003). Therefore, achieving a competitive advantage is a major preoccupation of senior managers in the competitive and slow growth markets, which characterize many businesses today and the sources of competitive advantage have been a major concern for scholars and practitioners for the last two decades (Henderson, 1983; Porter, 1985; Coyne, 1986; Prahalad and Hamel, 1990; Barney, 1991; Grant, 1991; Peteraf, 1993). The......

Words: 4920 - Pages: 20