The Economic Impact of the Japanese Disasters

Harvard Business Review

Transportation disruptions and the closing of many factories throughout Japan will shrink Japanese aggregate demand and disrupt supply chains worldwide. Analysts have already reduced forecasted GDP growth rates for Japan by 0.5% With government deficits equaling 10% of GDP, and national debt at 200% of GDP, funding the recovery plan with still more government debt would be imprudent.

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The Question with AI Isn’t Whether We’ll Lose Our Jobs — It’s How Much We’ll Get Paid

Harvard Business Review

It is the continuous obligation of economic policy to match increases in productive potential with increases in purchasing power and demand. Wage growth has not kept up with productivity growth; labor’s share of GDP has fallen and capital’s share has risen. anucha sirivisansuwan/Getty Images. The basic fact is that technology eliminates jobs, not work.

More and More CEOs Are Taking Their Social Responsibility Seriously

Harvard Business Review

The Ford story doesn’t add up , if you assume that Ford believed that his move alone was enough to raise overall demand for cars. But if you think instead that he was signaling to his competitors that if they all moved none of them would be at a disadvantage and that aggregate demand for the industry would increase, then the principle arguably holds in other contexts for some of today’s giants. The top 500 firms’ revenues equate to nearly 37% of world GDP.