Summary of Capital Markets and Job Creation in the 21st Century

Brookings Institution,

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Capital Markets and Job Creation in the 21st Century summary
Policy makers should revisit their assumptions about job creation in the 21st century.

Rating

8 Overall

9 Importance

8 Innovation

7 Style

Recommendation

Professor Jerry Davis adeptly analyzes how capital markets, corporations and employment are intertwined substructures in the US economy and how their interrelationships have changed over time. Post–World War II corporations made capital investment a servant of company growth and stability, producing high-wage occupations. In the 1980s, shareholder value began ruling corporate decision making: Long-term employment eroded as firms moved to outsourcing and then to “labor on demand.” Thus, jobs and corporate missions are at odds today. getAbstract recommends this illuminating exposition to policy makers, business leaders and everyone who has or wants a job.

In this summary, you will learn

  • How the American economy has changed since the 1980s
  • Why shareholder value and long-term employment are opposing goals
  • Why policy makers need to rethink job-growth strategies
 

Summary

In the decades after World War II, the corporate business model brought about the American economic success story: Public corporations created large-scale, high-wage career employment. Firms needed employees to conduct operations, serve customers and contribute to the long-run viability of a business...
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About the Author

Jerry Davis is a professor of management and sociology at the University of Michigan.


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