How to make better Economy in Business?

The Currency Fix: The invisible hand doesn't mean that profiteers get to reach into your pocket with every trade. Yet, that's the economy we've built: one where you bear a collective responsibility for the decisions of bankers, beancounters, and other borrowers. Why? Because you have to invest, consume, and earn in a national currency, which can whipsaw up, down, or sideways, leaving you and your savings at the mercy of the state and the crony capitalists that control it.

The Governance Graft: Hey, look -- it's another megacorporation melting down...yawn. The real question is: why are institutional shareholders asleep at the wheel? There's only one economic answer: because they cannot bear increasingly steep costs of corporate governance. When shareholders meet a handful of times a year, when corporations report thin, bogus info -- and hedge funds barely have to report anything at all -- when CEOs wield power over boards, when boards are composed of golfing buddies, governance, in the simplest sense of the word, is simply uneconomical -- and shareholders tune out and turn off.

The Speculation Racket: Speculation is healthy, right? Not so fast. Every dollar dumped into speculation also has an opportunity cost: though it might offset risk, or reveal better info, it's not employed directly in productive economic activity. For example, when I buy a share from you, that capital doesn't flow to the firm to fund new projects, but to you. The corporation in question benefits only (very) indirectly -- and so bad management is punished, but good management isn't fully rewarded.

The Management Shakedown: Talented managers are what make the difference between the great corporations and the also-rans, right? Maybe not. Managers extract a heavier and heavier toll regardless: you know the score, 7- or 8-figure packages -- for running a company into the ground.