The economic model is quite relevant to the new vision introduced by Klaus Schwab almost 50 years ago, is exact from 2019 is exactly what this Harvard is citing its motivation a refreshment of the Davos Manifesto in 2020: all its stakeholders in shared and sustained value creation Value is defined in a very special way. not material, commodity, value money wealth, this abstruse notion of value or wealth that includes leisure time, relationship quality, beauty of nature and all other kind of abstract that come in under well-being economies and ecological accounting (you own nothing but you are happy) The Corruption of Stakeholder Capitalism.
How are you going to measure "all other kind of abstract that come in under well-being economies and ecological accounting (you own nothing but you are happy) ". It is an 'abstract' so how are you going to measure it ? A person with a drug habit lying on park bench is happy in their own mind despite being in a drug induced stupor so what you effectively say is they fit the criteria of 'abstract.'
She understands virtually nothing when talking about wealth and value. She starts talking about wealth and then says we need to tax wealth. Taxes do NOT create wealth !! Taxes are wealth extraction itself because they produce Nothing at all except transfer of wealth or value. What a load of rubbish.
No, you didn't get what Mazzucato explained. One of her main point => GDP does not track value because it contains rent and rent do not create value (by definition). First, she explains that "value" is measured using the price. This is the "main ideas" of the neoclassical economy -> if you pay for it, that means the product as this value. This neoclassical assumption can be questioned. Are the people with the bigger revenue the more productive? Can you be 100000000x more productive than the average human? Certainly not. Worst, a lot of "unproductive" sector are the one that absorbs the most capital (most paid). So taxes? She actually critics the use of taxes as the main incentive instrument. And propose a more pro-active way and pick the actors willing to take up a specific mission. You should read her Wikipedia page, she is actually a very interesting economist.
@@gagarine42 She is wrong n many levels. You say "rent do not create value (by definition)". To start with you could answer whose definition is that ? Why would rent not create value? Does hiring a piece of machinery to perform a task mean the machine does not create value ? Really some of the ideas she puts across are amongst the worst econmic ideas I have ever heard in over fifty years and have been tried before and failed miserably and utterly and have put countries and their peole into financial and material ruin.
@@Rob-fx2dw "In economy, economic rent is any payment to an owner or factor of production in excess of the costs needed to bring that factor into production." Source : en.m.wikipedia.org/wiki/Economic_rent
@@Rob-fx2dw sorry, I didn't get it right the first time. You are right, the usage of the tractor will create value. But you have to see it the other way around. If the price of renting the tractor is higher than all the cost (the price of the tractor, paying the debt, employee to manage it, opportunity cost, ... ) then you have an "economic rent". If you pay 100$ to rent the tractors a day but the total cost for the owner is only 40$ then 60$ is pure economic rent. Those 60$ you paid do not create value, they are only rent. Rents are different than normal profit, as they exceed the opportunity cost.
The economic model is quite relevant to the new vision introduced by Klaus Schwab almost 50 years ago, is exact from 2019 is exactly what this Harvard is citing its motivation a refreshment of the Davos Manifesto in 2020: all its stakeholders in shared and sustained value creation Value is defined in a very special way. not material, commodity, value money wealth, this abstruse notion of value or wealth that includes leisure time, relationship quality, beauty of nature and all other kind of abstract that come in under well-being economies and ecological accounting (you own nothing but you are happy) The Corruption of Stakeholder Capitalism.
How are you going to measure "all other kind of abstract that come in under well-being economies and ecological accounting (you own nothing but you are happy) ". It is an 'abstract' so how are you going to measure it ? A person with a drug habit lying on park bench is happy in their own mind despite being in a drug induced stupor so what you effectively say is they fit the criteria of 'abstract.'
If you can't keep up, bu-bye!
She doesn't seem to be talking to her audience as much as she is trying to make sure she covers her material quickly.
Very informative, as always
Not everyone is sleeping🌹
Excellent!
She understands virtually nothing when talking about wealth and value. She starts talking about wealth and then says we need to tax wealth. Taxes do NOT create wealth !! Taxes are wealth extraction itself because they produce Nothing at all except transfer of wealth or value. What a load of rubbish.
No, you didn't get what Mazzucato explained. One of her main point => GDP does not track value because it contains rent and rent do not create value (by definition).
First, she explains that "value" is measured using the price. This is the "main ideas" of the neoclassical economy -> if you pay for it, that means the product as this value.
This neoclassical assumption can be questioned. Are the people with the bigger revenue the more productive? Can you be 100000000x more productive than the average human? Certainly not. Worst, a lot of "unproductive" sector are the one that absorbs the most capital (most paid).
So taxes? She actually critics the use of taxes as the main incentive instrument. And propose a more pro-active way and pick the actors willing to take up a specific mission.
You should read her Wikipedia page, she is actually a very interesting economist.
@@gagarine42 She is wrong n many levels. You say "rent do not create value (by definition)". To start with you could answer whose definition is that ? Why would rent not create value?
Does hiring a piece of machinery to perform a task mean the machine does not create value ?
Really some of the ideas she puts across are amongst the worst econmic ideas I have ever heard in over fifty years and have been tried before and failed miserably and utterly and have put countries and their peole into financial and material ruin.
@@Rob-fx2dw "In economy, economic rent is any payment to an owner or factor of production in excess of the costs needed to bring that factor into production." Source : en.m.wikipedia.org/wiki/Economic_rent
@@gagarine42 I get that. But what point are you making in respect to rent and my comment that hiring a tractor for rent and creating value?
@@Rob-fx2dw sorry, I didn't get it right the first time. You are right, the usage of the tractor will create value. But you have to see it the other way around. If the price of renting the tractor is higher than all the cost (the price of the tractor, paying the debt, employee to manage it, opportunity cost, ... ) then you have an "economic rent". If you pay 100$ to rent the tractors a day but the total cost for the owner is only 40$ then 60$ is pure economic rent. Those 60$ you paid do not create value, they are only rent.
Rents are different than normal profit, as they exceed the opportunity cost.