I wrote so people can have a simple understanding of market cap and also inform that we have in fact power into change things. It's a question of choice, and small intentional choices when made at scale, will change the behavior of companies and also governments.
Great article! Economics is a subject few are conversant in even as it has powerful impact and influence on everyday lives. The economic theories in practice over the past decades (Thatcher/Regan days) has created 'shareholder supremacy' and monopolies. Tech is now deeply entrenched in the marketplace of dominant monopolies. Government Policy further supports these practices. But commerce needs customers and when customers no longer exist, the change then becomes radical - as evidenced by history. Value on paper (even digital paper) can evaporate. Technology has made incredible contribution to human advancement and well being over time. But, like everything, ethical guidance and fairness is the foundation for thriving.
That's true Kathleen, the point you make about "shareholder supremacy" is real. most of the times we blame the companies, which in fact are culprits, but we often forget the "investors", the "stakeholders" that wants profit above anything else. And indeed we need governments to redesign what an economy should prioritise. Like the GDP is not a metric to determine the happiness of a population.
It feels we are in a particular transition. I believe there's an opportunity to tackle some fundamental issues we now face. And perhaps one is how we envision the role of companies, because it can't be just stakeholder world view.
Thank you. This made me think.
I wrote so people can have a simple understanding of market cap and also inform that we have in fact power into change things. It's a question of choice, and small intentional choices when made at scale, will change the behavior of companies and also governments.
Great article! Economics is a subject few are conversant in even as it has powerful impact and influence on everyday lives. The economic theories in practice over the past decades (Thatcher/Regan days) has created 'shareholder supremacy' and monopolies. Tech is now deeply entrenched in the marketplace of dominant monopolies. Government Policy further supports these practices. But commerce needs customers and when customers no longer exist, the change then becomes radical - as evidenced by history. Value on paper (even digital paper) can evaporate. Technology has made incredible contribution to human advancement and well being over time. But, like everything, ethical guidance and fairness is the foundation for thriving.
That's true Kathleen, the point you make about "shareholder supremacy" is real. most of the times we blame the companies, which in fact are culprits, but we often forget the "investors", the "stakeholders" that wants profit above anything else. And indeed we need governments to redesign what an economy should prioritise. Like the GDP is not a metric to determine the happiness of a population.
I genuinely believe we are in a transition phase of humanity. The equalized benefit of such tech has not been democratized to all.
It feels we are in a particular transition. I believe there's an opportunity to tackle some fundamental issues we now face. And perhaps one is how we envision the role of companies, because it can't be just stakeholder world view.
I suggest this book to get a better understanding of market cap and companies valuations;
Book title: Capital in the Twenty-First Century
It does go over the analysis of wealth and inequality, on how market capitalisation and corporate power contribute to economic disparities.
Narrative and Numbers is also a great book.