The More Climate Skeptics There Are, the Fewer Climate Entrepreneurs

Harvard Business Review

But how does the presence of climate skeptics affect the market for climate-related innovation? A drug company must incur a large fixed cost to do the basic research, so it has strong incentives to predict what the demand for the drug will be if its research succeeds. The small market size would lead the company to not invest in baldness medication. The higher the market demand for a drug, the greater the probability that at least one drug maker conducts basic research.

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. at the market's close on Monday (3/14), erasing more than $300 billion of equity value, and lost another 10.6% Flooding money markets on Sunday (3/13) with ¥15 trillion (about $183 billion) was a sensible first step by the Bank of Japan, but the real challenge lies ahead.

GDP 17

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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. Automation anxiety is made more acute by a labor market that has tilted against workers over the last 30 years, with increasing income inequality and stagnant real wages. anucha sirivisansuwan/Getty Images. The basic fact is that technology eliminates jobs, not work.

What the U.S. Economy Needs More Than Manufacturing

Harvard Business Review

The idea is important because we need demand in this economy in order to create jobs. Domestic demand is being constrained because our government is trying to get its fiscal house in order. The truth is, we don't actually compete much with China in our export markets; it's mainly with the Europeans, the Canadians, the Japanese. Demand is deficient and you need a strategy to fix that. But a jobs strategy has to be based on aggregate demand throughout the economy.

More and More CEOs Are Taking Their Social Responsibility Seriously

Harvard Business Review

It has such a high share of the market that when there’s a problem with fake news it becomes, in large part, Facebook’s problem. To the extent these firms have market power, they’re less subject to quarter-to-quarter competitive pressure. And, to some degree, they have room to use that market power to pursue social objectives – especially if their investors of their employees pressure them to do so. Ryan McVay/Getty Images.