Rethinking productivity and the pushback to shareholder capitalism

Rethinking Productivity and Outcome Focus

The podcast episode explores the need to redefine productivity in the modern work environment. Dominic Price from Atlassian emphasizes that traditional measures of productivity, which were based on physical work, no longer align with the current knowledge-based economy. He argues for a shift towards an outcome focus, where the impact on the end customer is prioritized over busyness and outputs. This shift can help address issues such as burnout and mental health while promoting creativity and innovation.

Moving Towards Stakeholder Capitalism

The podcast discusses the concept of stakeholder capitalism as an alternative to shareholder primacy. Jessica Lind explains that stakeholder capitalism considers a broader range of individuals and entities affected by a business, such as customers, suppliers, employees, and the environment. This approach aims to create societal benefits alongside financial profits. The trend towards stakeholder capitalism is driven by consumer demand and investor preferences for companies that prioritize environmental, social, and governance factors. Changing corporate charters or obtaining B Corp certification are some ways businesses can adopt this approach.

Exploring Alternate Methods for Controlling Inflation

The podcast highlights an alternative approach for controlling inflation that involves increasing retirement savings rather than raising interest rates. Economist Lachlan Kerwood-McCall proposes an adjustable rate of compulsory savings that diverts a portion of pre-tax income into retirement funds. This strategy reduces consumer spending while building long-term productive investment and increasing financial security. Despite the advantages, this approach faces challenges due to the prevalent reliance on interest rates and resistance to government intervention in personal finances.

Shifting to Fiscal Policy and Overcoming Monetary Dominance

The podcast discusses the historical shift from fiscal policy to monetary policy dominance in managing economic stability. In response to the high inflation experienced in the 1970s, governments and economists turned to monetary policy as a more effective tool. Lachlan Kerwood-McCall suggests that the economics profession's long-standing preference for monetary policy over fiscal policy contributes to the reluctance in considering alternative approaches. However, the need to address economic challenges and pursue a more equitable future may require reevaluating the predominant focus on interest rates and exploring the benefits of fiscal policy intervention.

Future Tense

Rethinking productivity and the pushback to shareholder capitalism

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Quick takeaways

Deep dives

Rethinking Productivity and Outcome Focus

Moving Towards Stakeholder Capitalism

Exploring Alternate Methods for Controlling Inflation

Shifting to Fiscal Policy and Overcoming Monetary Dominance

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