From A Market Economy To A Finance Economy: The Most Dangerous American Journey

From a Market Economy to a Finance Economy This page intentionally left blank From a Market Economy to a Finance Economy The Most Dangerous American Journey A. COSKUN SAMLI FROM A MARKET ECONOMY TO A FINANCE ECONOMY Copyright © A. Coskun Samli, 2013. Softcover reprint of the hardcover 1st edition 2013 978-1-137-32557-0 All rights reserved. First published in 2013 by PALGRAVE MACMILLAN® in the United States— a division of St. Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-45947-6 ISBN 978-1-137-32298-2 (eBook) DOI 10.1057/9781137322982 Library of Congress Cataloging-in-Publication Data Samli, A. Coskun. From a market economy to a finance economy : the most dangerous American journey / A. Coskun Samli. pages cm Includes bibliographical references. 1. Capitalism—United States. 2. United States—Economic conditions—2009– 3. United States—Economic policy—2009– 4. Finance—United States. 5. Entrepreneurship—United States. I. Title. HC106.84.S25 2013 330.973—dc23 2012046508 A catalogue record of the book is available from the British Library. Design by Newgen Imaging Systems (P) Ltd., Chennai, India. First edition: May 2013 10 9 8 7 6 5 4 3 2 1 This book is dedicated to a most proactive government that worries about the people and the future of the country. Is there such a government out there? This page intentionally left blank Contents List of Exhibits ix Preface xi Acknowledgments xvii About This Book xix Introduction 1 1 American Market Economy: Quo Vadis 11 2 The Disappearing Magic of the Market Economy 27 3 Greed, the Unfortunate Financial Disease 41 4 Too Big to Fail or Too Big to Succeed 57 5 Early Indicators If Any 67 6 The Innovation Culture: Where Are You? 81 7 Recessions Are Totally Man Made 97 8 Live but Also Learn to Let Live 115 9 Alice in the Finance Land 127 10 Government: A Partner or Foe? 133 11 Going Forward to a Market Economy 139 Postscript 153 References 157 About the Author 163 Index 165 This page intentionally left blank Exhibits I.1 2.1 2.2 2.3 3.1 3.2 3.3 3.4 3.5 4.1 4.2 4.3 5.1 5.2 5.3 5.4 5A.1 6.1 6.2 6.3 6.4 6.5 6.6 Generating wealth The three trends and their questionable impact The dilemma of the American consumer Special problems of oligopolies Contrasting the orientation of the greedy versus the ambitious Shocking differences in modus operandi Some of the key destructive practices of the greedy leading to the strengthening of a finance economy How do the ambitious contribute Deadly sins and their impact The key problems of being oversized Personnel conflicts Too-big-to-failers’ failures Some of the key indicators of a move to a finance economy Continuing dangerous journey Estimated income distribution in 2010 Percentage income changes between 1990 and 2010 CPI for the rich and poor in 2009 The triple helix Progressive innovativeness Elements of a proinnovation national strategy Educational support for innovation The thre