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An honest look at price, innovation and who powers the economy | Mariana Mazzucato

Dec 11, 2019
Mariana Mazzucato, an influential economist known for her focus on innovation and value creation, delves into the origins of wealth and the misconceptions surrounding it. She emphasizes the need to rethink our financial systems to foster a more inclusive economy. Mazzucato discusses the difference between value creation and extraction, particularly in the wake of the 2009 financial crisis. She also highlights the importance of public-private collaboration, using the moon landing as an example, to push for innovative solutions to challenges like climate change.
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INSIGHT

Value Creation vs. Extraction

  • We need a clear distinction between value creation and extraction.
  • Current economic thinking has become lazy and doesn't adequately address this.
ANECDOTE

Goldman Sachs' Productivity Claim

  • The CEO of Goldman Sachs claimed its workers were the most productive after the 2008 financial crisis.
  • This statement, made after the bank received a taxpayer bailout, highlights a flawed understanding of productivity.
INSIGHT

Physiocrats and the Source of Value

  • Physiocrats, early economists, viewed farm labor as the primary source of value.
  • They categorized classes based on their contribution to value creation and warned against siphoning resources from production.
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