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Academic

: Conglomerate

Creative Capitalism, by Michael Kinsley

By Gordon Smith, Christine, Hurt, Vic Fleischer, Fred Tung, Lisa Fairfax, David Zaring

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This book came over the transom; it is a formerly private listserv now reduced to print, comprised of some very bright sparks charged with mulling Bill Gates' idea of putting capitalism to work on alleviating social problems. Among economists, Ed Glaeser is enthusiastic, while Bill Easterly, Steven Landsburg, Richard Posner, and Greg Clark prefer greedy capitalism to the creative variant.  Lots of other big thinkers weigh in as well. Glaeser has this notable suggestion on page 82:

If more corporations are going to be "creative," then we surely need to consider new contractual forms that reflect the fact that firms may want to do other things in addition to making money for their shareholders. For example, firms can certainly have two types of voting shares, one of which goes to investors and the other of which goes to workers. The legal obligation of the firm under this structure would be to return a decent profit to shareholders and to cater to their empowered workers' desire to do something good.

Dual class voting?  Public service and private gain reflected in stock classes?  What is this guy, a lawyer?  Anyway, quite thought-provoking.

Full post as published by Conglomerate on January 15, 2009 (boomark / email).

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