Sublime

Smoot-Hawley was implemented at the beginning of the Great Depression, when countries around the world were already engaged in the currency depreciation, import restrictions, and tariffs that English economist Joan Robinson would later characterize as “beggar-my-neighbor” policies. As Robinson explained, these policies expand domestic growth by sub

From each according to his ability, to each according to his ability to effectively deploy capital to achieve real economic growth.

Both policy changes discouraged companies from retaining earnings and reinvesting them. But since research expenses were a cost in accounting terms, businesses could invest their money there, untaxed.

Second, those who hold return-seeking capital assets but who do not lever up are comparatively disadvantaged if their competitors do.

Michael Porter, a Harvard Business School professor who is considered the founder of modern corporate strategy, had seized Hinton’s attention with a 2011 essay whose rather modest critique of the prevailing approach to business created a stir in a world not used to such friendly