How this recession will end

From Uar Haque, a Harvard Economist who keeps an excellent blog:

…strategists must rediscover the lost art of authentic value creation. Authentic, long-run value isn’t created through arbitrage or gamesmanship — what we too often confuse strategy for. Games of off-balance sheet accounting, currency hedging, capital structuring, so-called labour arbitrage — where corporations simply shift to the lowest-cost, or most poorly regulated, sources of manpower — don’t create value. They just shift it around. Corporations who play this game of economic musical chairs are in for a rude awakening – because the music just stopped. And so they must rediscover the simple fact that value creation flows from making economic activities not just profitable in the short- run — but meaningful over the long-run.

One Response to “How this recession will end”

  1. Matt Says:

    From Uar Haque’s lips to god’s ears. What a wonderful (old) world that would be.

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