Previously - EOE025 Dec 24, 2016

Previously - EOE025 Dec 24, 2016

In the 25th session of EoE, 24th December 2016, EOE society talked about three articles below from The Economist, a British newspaper.

Below is the summary of what EoE discussed.

1. Shumpeter - Management theory is becoming a compendium of dead ideas - What Martin Luther did to the Catholic church needs to be done to business gurus (Dec 17th 2016) http://www.economist.com/node/21711909/print

Basically, this article harshly criticises a false belief of traditional Management theories that deceive naive people regarding four basic ideas.

Firstly, about business trend, it is too easy for the naive to get caught in a trap of believing business is competitive than ever, but in reality, consolidation can be more representative of the today's trend than competition.

Secondly, the entrepreneurship is prevailing in the field. Apparently, based on American business's continuous declining in numbers and European cases where hardly any rapid growth from small companies is shown owing to both taxation and work-life balance spirits, the cult of entrepreneurship is withering.

Third idea is about the agility of decision-making. Anyone who have experience of working in a big corporate would probably sympathise sufferings from endless decision making process and wasting time consulting with different departments and slow-as-hell bureaucrats. The technology has increased the number of things we have to do as well as things we can do at the same time. Last but not least, this year we can say was quite a remarkable year considering the fact that the believers of globalisation were harshly batted by the rising protectionism and populism. The flow of information and product incurred by technology and free-trade spirit turned out to be reversible and evitable in the end by the forces of nationalism. In my opinion, it is time to think again about the fact that thoughtless accommodation of external flows can be disastrous to all.

2. Buttonwood’s notebook - Financial markets - Wall Street - Dow 20,000? (Dec 14th 2016, 12:30 by Buttonwood) http://www.economist.com/node/21711782/print

to be written soon

3. Holiday traditions - The Federal Reserve at last manages to lift rates in 2016 (Dec 14th 2016, 20:59 by R.A. / Washington) http://www.economist.com/node/21711864/print

Whether the third act of the holiday tradition—an inevitably disappointing performance of inflation and wage growth, which forces the Fed to abandon all but one of its expected rate hikes—will also be repeated remains to be seen. 

Wage growth and inflation in America are accelerating

to be written soon




written by Benjamin James W.K. JO