Abstract
The key to understanding ‘capitalism’ as a mode of resource allocation that generates economic growth is the organization and performance of its most innovative business enterprises. The ‘Old Economy business model’ that made the United States the world’s most powerful nation in the post-Second World War decades came under challenge in the 1970s and 1980s, and the ideology of ‘maximizing shareholder value’ arose to legitimize a redistribution of income from labour interests to financial interests. The ‘New Economy business model’ emerged in the 1980s and 1990s to drive the innovation process, contributing, however, to unstable and inequitable economic growth.
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Lazonick, W. (2018). Contemporary Capitalism. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2774
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2774
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