Thu, 16 February 2017
AIPIS 173 - Unintended Consequences: Why Everything You’ve Been Told About the Economy is Wrong with Ed Conard
Jason Hartman talks with Ed Conard, economist, and founding partner, with Mitt Romney, of Bain Capital. Conard wrote the New York Times Bestselling book Unintended Consequences: Why Everything You’ve Been Told About the Economy is Wrong and his soon to be released book, The Upside of Inequality: How Good Intentions Undermine the Middle Class. The two discuss the misunderstandings on CEO pay, why the technology sector is doing so well, and how current regulations tend to benefit the big players in the market.
[1:28] Ed discusses his time at Bain Capital with Mitt Romney, when they experienced enormous growth.
[3:30] Clients of Bain Capital were given the opportunity to invest in capital investment and management supervision related opportunities.
[5:07] The company also utilized a higher risk strategy, which allowed them to take advantage of investment opportunities of undervalued assets.
[7:21] The Upside of Inequality delves into American workers productivity
[12:18] The US economy is accelerating and we don't see a stagnant Fortune 400, which means companies aren't just negotiating for a bigger piece of the pie
[14:47] While the headlines make it seem ridiculous, CEO pay may not be quite as outrageous as it appears
[19:36] Tech companies pay less taxes and have lax regulation, especially when compared to other sectors, who have to continuously look for loopholes to give get a competitive advantage.
[21:22] The rise of profitability in the tech sector has been extraordinary.
[22:23] The economy is squeezing the profitability out of every most other sectors.
[24:45] Properly trained talent and a willingness to take risk are the binding constraints to growth in this new economy.