From the article:
Appointments and potential
appointments like those of Carney and Fischer illustrate that the demand for
talent and the winner-take-all phenomena of a globalized world are not limited
to the business world.
Small differences in quality at the
top have a greater impact the larger the firm, the market, or the economy.
How many truly great decisions did Bill Gates make at Microsoft (compared to
another plausible CEO)? I would guess that fewer than 10
decisions made billions of dollars of difference. And if Yellen-Fischer make
just a few better calls than their next best counterparts, well that could
easily be worth hundreds of billions.
It’s also notable that the Federal
Reserve is trying to create the highest-quality team. O-ring
production tells us that you maximize the value of production by
matching high-quality workers with other high quality workers. In the
private sector, O-ring production magnifies inequalities of talent into even
larger inequalities of income. In the public-sector, O-ring production
magnifies inequality of talent into even larger inequalities of power.
The bottom line is this, a common
set of factors is driving inequality: equality of opportunity, assortative
mating, O-ring production, increases in the demand for talent driven by the
leveraging of talent through technology. The forces are similar and so are the
results, the money elite, the monetary elite, the power elite.
Appointments
and potential appointments like those of Carney and Fischer illustrate
that the demand for talent and the winner-take-all phenomena of a
globalized world are not limited to the business world.
Small differences in quality at the top have a greater impact the larger the firm, the market, or the economy. How many truly great decisions did Bill Gates make at Microsoft (compared to another plausible CEO)? I would guess that fewer than 10 decisions made billions of dollars of difference. And if Yellen-Fischer make just a few better calls than their next best counterparts, well that could easily be worth hundreds of billions.
It’s also notable that the Federal Reserve is trying to create the highest-quality team. O-ring production tells us that you maximize the value of production by matching high-quality workers with other high quality workers. In the private sector, O-ring production magnifies inequalities of talent into even larger inequalities of income. In the public-sector, O-ring production magnifies inequality of talent into even larger inequalities of power.
The bottom line is this, a common set of factors is driving inequality: equality of opportunity, assortative mating, O-ring production, increases in the demand for talent driven by the leveraging of talent through technology. The forces are similar and so are the results, the money elite, the monetary elite, the power elite.
- See more at: http://marginalrevolution.com/marginalrevolution/2014/01/inequality-and-the-masters-of-money.html#sthash.adazbPUO.dpuf
Small differences in quality at the top have a greater impact the larger the firm, the market, or the economy. How many truly great decisions did Bill Gates make at Microsoft (compared to another plausible CEO)? I would guess that fewer than 10 decisions made billions of dollars of difference. And if Yellen-Fischer make just a few better calls than their next best counterparts, well that could easily be worth hundreds of billions.
It’s also notable that the Federal Reserve is trying to create the highest-quality team. O-ring production tells us that you maximize the value of production by matching high-quality workers with other high quality workers. In the private sector, O-ring production magnifies inequalities of talent into even larger inequalities of income. In the public-sector, O-ring production magnifies inequality of talent into even larger inequalities of power.
The bottom line is this, a common set of factors is driving inequality: equality of opportunity, assortative mating, O-ring production, increases in the demand for talent driven by the leveraging of talent through technology. The forces are similar and so are the results, the money elite, the monetary elite, the power elite.
- See more at: http://marginalrevolution.com/marginalrevolution/2014/01/inequality-and-the-masters-of-money.html#sthash.adazbPUO.dpuf
Appointments
and potential appointments like those of Carney and Fischer illustrate
that the demand for talent and the winner-take-all phenomena of a
globalized world are not limited to the business world.
Small differences in quality at the top have a greater impact the larger the firm, the market, or the economy. How many truly great decisions did Bill Gates make at Microsoft (compared to another plausible CEO)? I would guess that fewer than 10 decisions made billions of dollars of difference. And if Yellen-Fischer make just a few better calls than their next best counterparts, well that could easily be worth hundreds of billions.
It’s also notable that the Federal Reserve is trying to create the highest-quality team. O-ring production tells us that you maximize the value of production by matching high-quality workers with other high quality workers. In the private sector, O-ring production magnifies inequalities of talent into even larger inequalities of income. In the public-sector, O-ring production magnifies inequality of talent into even larger inequalities of power.
The bottom line is this, a common set of factors is driving inequality: equality of opportunity, assortative mating, O-ring production, increases in the demand for talent driven by the leveraging of talent through technology. The forces are similar and so are the results, the money elite, the monetary elite, the power elite.
- See more at: http://marginalrevolution.com/marginalrevolution/2014/01/inequality-and-the-masters-of-money.html#sthash.adazbPUO.dpuf
Small differences in quality at the top have a greater impact the larger the firm, the market, or the economy. How many truly great decisions did Bill Gates make at Microsoft (compared to another plausible CEO)? I would guess that fewer than 10 decisions made billions of dollars of difference. And if Yellen-Fischer make just a few better calls than their next best counterparts, well that could easily be worth hundreds of billions.
It’s also notable that the Federal Reserve is trying to create the highest-quality team. O-ring production tells us that you maximize the value of production by matching high-quality workers with other high quality workers. In the private sector, O-ring production magnifies inequalities of talent into even larger inequalities of income. In the public-sector, O-ring production magnifies inequality of talent into even larger inequalities of power.
The bottom line is this, a common set of factors is driving inequality: equality of opportunity, assortative mating, O-ring production, increases in the demand for talent driven by the leveraging of talent through technology. The forces are similar and so are the results, the money elite, the monetary elite, the power elite.
- See more at: http://marginalrevolution.com/marginalrevolution/2014/01/inequality-and-the-masters-of-money.html#sthash.adazbPUO.dpuf
Source: Alex Tabarrok, "Inequality and the Masters of Money," Marginal Revolution, January 14, 2014
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