Summary of Makers and Takers: by Rana Foroohar | Includes Analysis

By . IRB Media

Summary of Makers and Takers by Rana Foroohar | Includes Analysis

Preview:

Rana Foroohar’s Makers and Takers: The Rise of Finance and the Fall of American Business argues that finance has become an increasingly dominant force in controlling the organization of the US economy. This has weakened American business and created growing inequality.

The argument against the growing power of finance capital is not an argument against capitalism itself. Rather, finance must be reined in so that capitalism can proceed efficiently. Healthy competition is undermined when banks and financial conglomerates trade in commodities, thereby competing with businesses rather than supplying them with capital. Financial industries have access to information and capital that gives them unfair advantages in the market.

Financial firms make profits by manipulating money and debt, rather than by producing goods or providing services. The financialization of the economy has led to a pursuit of short-term profits to pump up stock prices at the expense of needed…

PLEASE NOTE: This is key takeaways and analysis of the book and NOT the original book.

Inside this Instaread Summary of Makers and Takers by Rana Foroohar | Includes Analysis

· Overview of the Book

· Important People

· Key Takeaways

· Analysis of Key Takeaways

About the Author

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• Language: English
• Publisher: IRB Media
• Release date: Jul 27, 2016
• ISBN: 9781683784203

. IRB Media

With Instaread, you can get the key takeaways, summary and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

Book preview

Overview

Rana Foroohar’s Makers and Takers: The Rise of Finance and the Fall of American Business argues that finance has become an increasingly dominant force in controlling the organization of the US economy. This has weakened American business and created growing inequality.

The argument against the growing power of finance capital is not an argument against capitalism itself. Rather, finance must be reined in so that capitalism can proceed efficiently. Healthy competition is undermined when banks and financial conglomerates trade in commodities, thereby competing with businesses rather than supplying them with capital. Financial industries have access to information and capital that gives them unfair advantages in the market.

Financial firms make profits by manipulating money and debt, rather than by producing goods or providing services. The financialization of the economy has led to a pursuit of short-term profits to pump up stock prices at the expense of needed investment in technology, innovation, and worker compensation. This focus, combined with risky speculation in the housing market, led to the financial collapse of 2008. Short-term thinking and deference to finance at the expense of manufacturing and other kinds of business have