The Chinese are quite able to think in terms of a map but also to talk about navigation on an equal footing with La Pérouse. Strictly speaking, the ability to draw and to visualize does not really make a difference either, since they all draw maps more or less based on the same principle of projection, first on sand, then on paper. So perhaps there is no difference after all and, geographies being equal, relativism is right ? This, however, cannot be, because La Pérouse does something that is going to create an enormous difference between the Chinese and the European. What is, for the former, a drawing of no importance that the tide may erase, is for the latter the single object of his mission. What should be brought into the picture is how the picture is brought back. The Chinese does not have to keep track, since he can generate many maps at will, being born on this island and fated to die on it. La Pérouse is not going to stay for more than a night ; he is not born here and will die far away. What is he doing, then ? He is passing through all these places, in order to take something back to Versailles where many people expect his map todetermine who was right and wrong about whether Sakhalin was an island, who will own this and that part of the world, and along which routes the next ships should sail.
How Clinton Could Knock Trump Out
And that leads to my second reason for pushing Clinton to inject some capitalism into her economic plan: The coalition she could lead. If there is one thing that is not going to revive growth right now, it is an anti-trade, regulatory heavy, socialist-lite agenda the Democratic Party has drifted to under the sway of Bernie Sanders. Socialism is the greatest system ever invented for making people equally poor.
.. I get that she had to lean toward Sanders and his voters to win the nomination; their concerns with fairness and inequality are honorable. But those concerns can be addressed only with economic growth; the rising anti-immigration sentiments in the country can be defused only with economic growth; the general anxiety feeding Trumpism can be eased only with economic growth.
.. It’s time that Hillary pivoted. The country today doesn’t need the first female president. It needs the first president in a long time who can govern with a center-left, center-right coalition, and actually end the gridlock on fiscal policy in a smart way.
Modern business, modern markets
Stock markets of the kind we recognise today owe their existence to the development of railways in the 19th century. Railways were large, capital intensive businesses, and their physical assets were specific to their particular purpose. There is little you can do with a railway except run trains on it.
.. This model was successfully extended to the large manufacturing corporations which were at the centre of the industrial landscape for much of the 20th century – breweries, automobile plants, petrochemical installations. The shareholders provided the plant, the workers operated it, the managers oversaw the process.
But this does not describe the typical corporation of the developed economy of the 21st century. Business is no longer capital intensive. Apple is today the largest corporation in the world with market capitalisation approaching $600bn, but owns operating assets valued at less than $20bn, and is typical of the ‘new’ companies that have come to dominate the global economy in the last two decades.
.. Modern businesses are typically cash generative at a much earlier stage of their lifetime.
.. When they come to market – and some are querying the need to do so – it is to provide a liquidity event for early stage investors and for employees rather than to raise funds for new investment.
.. In both Britain and the United States, amounts taken out of the market through share buy-backs and acquisitions for cash have exceeded the amounts raised through new issues over the last two decades. The stock market is no longer a means of putting money into companies, but a means of taking it out.
.. It is a corporate cliché that ‘our people are our most valuable assets’, and, like many clichés, it is often true. But if your most valuable asset goes home every evening, and can terminate his or her contract with you at short notice, your claim to ownership of such assets is tenuous.
.. A people business is intrinsically a partnership between its employees and its investors. The alignment of interests that follows from employees maintaining a substantial equity stake is an essential part of such a structure. Indeed, the transaction could only sensibly occur in the first instance on the basis of a relationship of mutual trust and confidence.
.. Shareholders in financial businesses which became limited liability companies and floated on public markets did not do well: neither former building societies nor investment banks proved rewarding for their shareholders. They fell victim to two problems: the asymmetry of risk allocation, in which employees shared the profits but not the losses from highly leveraged equity: and a clash of organisational culture within the firms which was incapable of maintaining a relationship of trust and confidence with outside investors.
.. It may be time to rethink the general hostility to multiple share classes which is visceral in Britain. Historically, these structures were typically used to maintain family control of a business in which the primary economic interest had passed to outsiders. But for Sergey Brin, Larry Page, and Mark Zuckerberg and their senior colleagues, the businesses they control are in a real sense still their businesses even after a majority of the shares are held by others; they are dependent on the founders not just for the realisation of their ideas, but for the development of their long-term value.
.. Our markets need to adapt to the changed nature of 21st century business if they are to remain relevant in a world in which capitalism has little need of capital.
Why American Sports Are Socialist
And why European sports are not
America’s more capitalist sports fans commonly acknowledge that their country’s most popular sports, like the National Football League and the National Basketball Association, have several rules that would please a Scandinavian social democrat. Salary caps and luxury taxes limit how much each team can spend on players, punish those that over-spend, and close the gap between rich and poor teams. In both sports, the top draft picks typically go to the worst-performing squads from the previous year. Revenue sharing redistributes wealth among the rich and poor teams. Overall, success is punished by design, misfortune is rewarded by design, and the power of wealth is circumscribed with spending caps.
.. public policies are an echo of national history. For example, in the U.S., the legacy of the 19th century’s “open frontier” made Americans skeptical of government intrusion, while the absence of an influential socialist party after World War II made it difficult for leftist policies to take root.
.. When a soccer team performs poorly, it’s not rewarded with a high draft pick. Instead the club is relegated to a less competitive league, a mighty blow to their revenue. Meanwhile the most successful teams from lower divisions are promoted to more competitive leagues where they can earn even more money.
.. Promotions and relegations were a tailored solution to a specific problem in English soccer: the problem of chaotic abundance.
.. In English football, where there are hundreds of similarly talented squads, the promise of churn keeps those fans interested: Late-season games between bad teams take on enormous significance when a loss might lead to relegation.
.. In American football, where there are exactly 32 similarly talented teams, the promise of parity keeps those fans interested