Gravity-defying CEO pay is not a payment for talent. It’s not looting by the executives, either. It’s the outcome of principal-agent relationship in a market where new technologies combined with regulatory dereliction have created a lot of winner-take-all situations.
The US government has charged Sinovel, one of the largest Chinese wind turbine manufacturers, with stealing trade secrets from one of its US suppliers, alleging the offence amounted to “attempted corporate homicide”.
If we skip over the fact that this brings the personification of the corporation to a new and, well, corporeal level (I’ll leave that matter to Yves Smith), here’s your Rorschach: is Sinovel the hero and AMSC the villain, or vice versa? Continue reading →
Despite Sweden’s reputation for equality, the rioting has exposed a faultline between a well-off majority and a minority, often young people with immigrant backgrounds, who cannot find work, lack education and feel marginalised.
…. The gap between rich and poor in Sweden is growing faster than in any other major nation, according to the OECD, although absolute poverty remains uncommon.
A possibly connected fact: Sweden has become one of the world’s few net exporters of intellectual property – one of the big ones along with the US, UK, and France. Thesis: an economy based on intellectual monopoly is one of the major drivers of inequality of income, and reduced social mobility. Continue reading →
Many westerners have scolded me when I’ve told stories of the obscene amounts of music, movies and software I have pirated. What they fail to understand is that I used this mode of distribution for the lack of any realistic access to an alternative.