Summary Mariana Mazzucato: The Value of Everything - making and taking in the global economy - YouTube (Youtube) www.youtube.com
16,171 words - YouTube video - View YouTube video
One Line
The text explores the concept of value in the global economy, emphasizing the need for a reevaluation of current economic theories and the importance of understanding value in terms of wealth distribution and economic growth, while also criticizing the current understanding of value in terms of GDP and calling for a broader approach that prioritizes public value over individual gain.
Slides
Slide Presentation (10 slides)
Key Points
- Mariana Mazzucato emphasizes the importance of understanding value in economic and political discussions.
- Mazzucato argues for a reevaluation of government policies influenced by rent-seeking and wealth creation.
- The concept of shareholder value has been captured by business schools in a not very rigorous way, hindering progress since the financial crisis.
- Mazzucato calls for a revolution in economics departments and a rethinking of the underlying assumptions in value theory.
- There is a movement to rethink economics and redefine value creation, with a focus on contesting existing narratives.
Summaries
116 word summary
The text discusses various aspects of the concept of value and its implications in the global economy. It highlights the need for a reevaluation of current economic theories and the role of different actors in creating value. The author emphasizes the importance of understanding value in terms of wealth distribution and economic growth. The text also addresses the role of public institutions and the need to prioritize public value over individual gain. It criticizes the current understanding of value in terms of GDP and calls for a more comprehensive approach. The text concludes by discussing the role of government in shaping value and the need for a broader understanding of value in economic and political discussions.
1644 word summary
Mariana Mazzucato gave a talk on the value of everything and the global economy. She discussed the importance of public institutions and the need for ambition in the civil service. She highlighted the difference between users and customers, emphasizing the need to create value for users. Mazzucato mentioned examples of successful public institutions, such as the British Library and the BBC, and how they prioritize citizens over clients. She also discussed the importance of investment in public institutions and the green economy. Mazzucato criticized the current system of evaluating academics and called for a reevaluation of how we judge performance. She questioned the increasing number of managers in sectors like healthcare and emphasized the need to structure these sectors in a way that produces value. Mazzucato also addressed concerns about robots taking jobs and emphasized the importance of reinvesting profits back into the economy. She praised Denmark's approach to the green economy and highlighted their success in exporting green services to China. Mazzucato encouraged a broader definition of the green economy, including new forms of collaborations and organizational innovations. Finally, she discussed Adam Smith's simplistic approach to evaluating value and emphasized the need for a more nuanced perspective. In this excerpt from a YouTube video, Mariana Mazzucato discusses the concept of value and its implications in the global economy. She argues that the value of different activities and professions is subjective and depends on societal perceptions. Mazzucato also distinguishes between producing goods and producing services, highlighting the greater capital investment required for manufacturing. She criticizes the current financial system and calls for a reduction in financial commercialization.
Mariana Mazzucato emphasizes the importance of understanding value in economic and political discussions. She points out that economists often focus on short-term symptoms rather than unpacking the underlying value propositions. Mazzucato believes that business schools have more interesting conversations about value than economics departments. She criticizes the problematic economic theories that shape public investment decisions and calls for a reevaluation of these theories.
Mazzucato argues that the concept of shareholder value has been captured by business schools in a not very rigorous way. She suggests that this capture has hindered progress since the financial crisis. Mazzucato also mentions that China is increasingly embracing the concept of shareholder value, indicating a lack of debunking of underlying assumptions.
The author suggests that business schools have taken over the debate on value, while economics departments have become less engaged. She highlights the importance of understanding different theories and concepts of value to bring about meaningful change. Mazzucato also mentions the need to distinguish between value creation and value extraction, as well as the negative consequences of policies that prioritize short-term gains.
The author discusses the role of government in shaping value and calls for a reconsideration of government revenues and policies. Mazzucato argues that policies influenced by rent-seeking and wealth creation have increased inequality. She mentions specific examples, such as tax reduction policies benefiting companies with patents. Mazzucato also suggests that government interventions can help regulate markets and prevent rent extraction.
Mazzucato addresses questions from the audience, discussing the role of strategy in determining value and the prevalence of rent-seeking businesses. She mentions the importance of involving citizens in decisions about public value and challenges the notion that public organizations should only exist to set the rules of the game. Mazzucato also emphasizes the need for a broader understanding of value and public value in economic and political discussions. Public sector institutions like the BBC should focus on their core mission of serving the public good, rather than getting involved in activities outside their scope. The BBC often faces criticism for crowding out business broadcasters and should define its space more clearly. The concept of value creation and market shaping should be applied to both macroeconomic and detailed aspects of the economy. The current system allows for constant mistakes and failures, which require reactive fixes. The relationship between profits, wages, and productivity needs to be examined, as well as the role of labor unions and corporate governance practices. Public institutions need to argue their case and express their true value in order to counter the neoliberal view that they are a drain on the market. The issue of rent versus profits needs to be addressed, along with the confusion between rents and profits in GDP calculations. Wealth should be redistributed collectively, and the concept of value creation should include stakeholder-driven approaches. The current system is creating a high level of private debt and is at risk of another financial crisis. The source of disequilibrium in the system is unclear, but there is a need for a theory of value that goes beyond traditional economic theories. Value should be created collectively, and there should be a focus on inclusive, sustainable, and innovation-led growth. The relationship between value creation and distribution needs to be rethought, and contracts and collaborations between different actors need to be reevaluated. Government instruments should be used to bring in willing actors from different sectors to address societal challenges, rather than asking businesses what they need. Concrete missions, such as achieving the sustainable development goals, can be used to drive public purpose policies. In this excerpt, Mariana Mazzucato discusses the concept of public value and how it is created and evaluated. She emphasizes the need to restructure health services and reorganize society in a way that prioritizes what is important. Mazzucato argues against the notion that value is solely created by entrepreneurs and emphasizes the collective effort involved in creating value. She suggests that the value created should be shared collectively rather than fought over individually. Mazzucato also criticizes the current understanding of value in terms of GDP, which fails to account for the actual value created by government. She highlights the influence of tech companies in shaping the narrative around value creation and the need for a more comprehensive understanding of value in the digital economy. Mazzucato discusses the issue of high drug prices and the lack of reinvestment in production, which has led to a decline in business investment. She also questions the theory that shareholders are the biggest risk takers and deserve the most rewards. Mazzucato concludes by emphasizing the importance of understanding value and its impact on income distribution and economic growth. The financial sector, including banks, private equity, and hedge funds, was growing faster than the rest of the economy. This was not being properly accounted for in national accounts, leading to an overvaluation of the sector. The creation of GDP does not necessarily account for environmental impact until pollution is cleaned up. The 1970s marked the rise of financial mediation in the economy, which led to the inclusion of priced items in GDP. The author argues that value needs to be central to economic theory. Economic theory has a powerful influence on our understanding of wealth, distribution, and growth. The author emphasizes the importance of objective conditions and power dynamics in determining value and income. Classical economics focused on objective conditions and power dynamics, while neoclassical economics emphasizes supply and demand and subjective preferences. There is a need to measure value in cases where there is no clear mapping. The relationship between value, price, and income is tied to changing production conditions and power dynamics. The author discusses the views of Adam Smith and Karl Marx on productive and unproductive labor. The author criticizes the reliance on math in economics and suggests alternative mathematical approaches from biology. It is important to consider issues such as climate change, gender, and race within economic theory without relying on the same underlying assumptions and mathematics. The author argues that there needs to be a revolution in economics departments and a rethinking of the underlying assumptions in value theory. There is a movement to rethink economics due to the belief that current policies and theories have contributed to problems and inequality. The neo-classical revolution shifted the focus from a theory of value to a theory of price based on supply and demand. The modern-day theory taught in economics departments has made the understanding of value fuzzy. The classical economists, such as Adam Smith, focused on the relationship between industrial production, division of labor, and technological change. The author calls for a reevaluation of where wealth comes from and emphasizes the importance of different actors creating value, including businesses, the state, and civil society. The author criticizes the emphasis on redistribution rather than wealth creation and questions the concept of value as used by different groups such as Silicon Valley entrepreneurs. The notion of productivity and who is considered productive is also discussed. Lloyd Blanc, CEO of Goldman Sachs, claimed that Goldman Sachs workers are among the most productive in the world, despite the fact that the financial sector was responsible for the crisis. The concept of wealth creation and value production is often discussed but not clearly defined. The economics profession needs to engage in more debate and contestation in order to determine who the true wealth creators are. There is a movement to rethink economics and redefine value creation. The book "The Value of Everything" discusses the production boundary and the need to redefine corporate governance to embed purposefulness. Different actors in society have historically fought for recognition as productive contributors. The book also addresses the issue of value extraction and the importance of having a sense of purpose in corporate decision-making. The discussion of value creation and wealth is crucial for a stable and progressive economy. The book challenges existing narratives and highlights the importance of contesting these narratives. The author argues that even with progressive taxation policies, there is still a problem with wealth distribution. The lecture series on rethinking public value and public purpose aims to explore these themes. Mariana Mazzucato is a renowned economist and author who has made significant contributions to economic thought. The event was chaired by Paul Mason.
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Source: https://www.youtube.com/watch?v=ZUQgvhxMQOQ&list=WL&index=13
Page title: Mariana Mazzucato: The Value of Everything - making and taking in the global economy - YouTube
Meta description: IIPP Director Mariana Mazzucato speaks on new book about the concept of value, with audience Q&A chaired by Paul Mason.https://www.ucl.ac.uk/bartlett/public-...