Economic Implications

We usually think about rationality as being sensible or reasonable. For economists, rationality means when you make a choice, you will choose the thing you like best. Economic rationality accepts that people will act in a relatively predictable way.

Economists use thi...

• In developed countries, large portions of public-listed corporations are now owned by pension/mutual funds investing people’s retirement funds. This calls for a new definition of performance and long-term shareholder interests.
• It’s no longer enough to rely on low costs or governme...

Capitalization was key to the rise of economic indicators. Upper-class Americans began to put their wealth into new financial assets. They began to see their society as a capitalized investment and the people as capital that could be used to increase wealth.

In the North, ...