A Capitalistâ€™s Dilemma, Whoever Wins the Election - NYTimes.com
Christina Wodtke stashed this in life improvements
I coudl have easily quoted the whole thing. It's dense.
In a way, this mirrors the microeconomic paradox explored in my book â€śThe Innovatorâ€™s Dilemma,â€ť which shows how successful companies can fail by making the â€śrightâ€ť decisions in the wrong situations. America today is in a macroeconomic paradox that we might call the capitalistâ€™s dilemma. Executives, investors and analysts are doing what is right, from their perspective and according to what theyâ€™ve been taught. Those doctrines were appropriate to the circumstances when first articulated â€” when capital was scarce.
But weâ€™ve never taught our apprentices that when capital is abundant and certain new skills are scarce, the same rules are the wrong rules. Continuing to measure the efficiency of capital prevents investment in empowering innovations that would create the new growth we need because it would drive down their RONA, ROCE and I.R.R.
Itâ€™s as if our leaders in Washington, all highly credentialed, are standing on a beach holding their fire hoses full open, pouring more capital into an ocean of capital. We are trying to solve the wrong problem.