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12/01/16
Economics of the Chemical Enterprise. 3. Financialization
Filed under: Recent Posts, Mature professionals, Observ. Trends, Alternate Career Paths
Posted by: site admin @ 9:28 am

Reading a powerful work by Rana Foroohar, “Makers and
Takers
,” that explains the strong undercurrent that drives
the visible trends we see in offshoring, in automation, in
uneven distribution of profits and benefits.  It is what she
calls FINANCALIZATION.

ECONOMICS BACKGROUND
The first entry into Economics highlighted the need for the
ACS to engage “Economics practices,” like true forecasting
and principles that members can truly benefit from.  Older
practices of “reporting old news” is insufficient for a true
professional society
The second Economics posting pointed out observations of
limited startups and further concentration bigger firms
driving short term profits, bonuses for C-suite, and shareholder
dividends/ share-price.
.
WHAT IT IS ABOUT
This posting on Makers and Takers who are
  M: people, companies and ideas that create real economic
viability
  T:  users of the evolving dysfunctional market based systems
that aim to enrich themselves without resulting consequences

The Takers  implement “FINANCIALIZATION” that push 
outsourcing, not thinking about challenges to supply chain, 
and promote flash trading and computer-generated algorithms
used in complex securities resulting in market crashes.

Another longer term result is that the labor practices of Wall Street
are being imposed on the nature of employment and kinds
of workers used everywhere.  ”Wall Street values not worker
stability but constant market simultaneity.  If mortgages are
not the best thing, let’s get rid of the mortgage desk and we will 
hire them back in a year.  They are ‘liquid people.’”

Besides decreases in lending (to support start ups and new ideas),
and increases in trading and debt securities (rising debt and
credit levels stoke financial instability;  debt fueled finance
has become the saccharine substitute for growth),  we observe
the mounting monopoly power of large financial institutions
that dominate allocation and are causing even the most successful
ventures to take on debt, reduce regulation and influence legal
code changes.

This is a readable book that illuminates much of what we are
experiencing and ACS members need to know about.

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