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Critical Conversations with Rana Foroohar: Works of Rana Foroohar

On Education, Economy, and the Election

From "Saving Capitalism"

Time magazine cover page"America's economic illness has a name: financialization. It's an academic term for the trend by which Wall Street and its methods have come to reign supreme in America, permeating not just the financial industry but also much of American business. It includes everything from the growth in size and scope of finance and financial activity in the economy; to the rise of debt-fueled speculation over productive lending; to the ascendancy of shareholder value as the sole model for corporate governance; to the proliferation of risky, selfish thinking in both the private and public sectors; to the increasing political power of financiers and the CEOs they enrich; to the way in which a "markets know best" ideology remains the status quo. Financialization is a big, unfriendly word with broad, disconcerting implications."

"Companies should be run for shareholders but also for workers, customers and, to a certain extent, society at large. Capital markets must serve the long-term growth of companies, not pressure them into short-term alchemy.

"Are financial institutions doing things that provide a clear, measurable benefit to the real economy? Sadly, the answer at the moment is mostly no. But we can change things. Our system of market capitalism wasn't handed down, in perfect form, on stone tablets. We wrote the rules. We broke them. And we can fix them."

Rana Fofoohar

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