The Future of Shareholder Capitalism

We are living in a period of transition as many are questioning the form of capitalism that we live in today (called “shareholder capitalism”) and looking for ways to amend, improve or even replace it. A 2018 Gallup poll showed that decreasing numbers of Americans between the age of 18 and 29 held a positive view of capitalism, while an increasing number held a positive view of socialism. They are driven by deep concerns about environmental problems (like climate change), social problems (like income inequality), and economic concerns (like concentration of corporate power, excessive money in politics, and the challenges of earning more than your parents). These books can help you navigate these challenging times, addressing this period in various ways. Stout points out the legal and practical reality that the purpose of the firm is not to make money for the shareholder; an idea that has caused many problems in the market. Pearlstein, Henderson, Mazzucato, Jacobs and Stiglitz write specifically about the problems with today’s capitalism and how it must evolve. Deaton takes dead aim at the field of economics and how it has strayed from its true purpose (which was originally moral philosophy) and takes the rest of society with it. Lastly, Polman, Winston and Joly offer a new model for thinking about business and its role in society.