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Arianna On How To Fix America's Economy

Posted: 01/14/12 04:01 PM ET

On Friday, Arianna joined US News & World Report editor Mort Zuckerman and Time's Fareek Zakaria on CNN's Your Money to talk about the best way to fix capitalism.

In a segment called "Capitalism: On Trial," host Ali Velshi asked each panelist to name the best solution they'd heard for repairing America's battered system.

Arianna said she would look to a businessman, a professor, and a judge for solutions. The businessman is Jim Stengel, former global marketing head of Procter & Gamble, whose book "Grow" focuses on "the need for business to align their bottom line with the social impact they're having."

The professor is Roger Martin, a University of Toronto professor, whose book "Fixing The Game" proposes that the "shareholder value theory" has wrongly "put traders rather than customers at the center of business decisions."

The third person is prominent judge Jed S. Rakoff, who "has the gumption to go out there and say that the double standard" America uses to hold corporations accountable "has to end."

Zuckerman said he would focus on overhauling the country's education system to prepare students for a "world in which education and technology is going to be enormously predominant." Zakaria said the U.S. economy is based "overly on consumption," and must focus more on investments in human and physical capital.

Watch the segment below:

 
On Friday, Arianna joined US News & World Report editor Mort Zuckerman and Time's Fareek Zakaria on CNN's Your Money to talk about the best way to fix capitalism. In a segment called "Capitalism: On...
On Friday, Arianna joined US News & World Report editor Mort Zuckerman and Time's Fareek Zakaria on CNN's Your Money to talk about the best way to fix capitalism. In a segment called "Capitalism: On...
 
 
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HUFFPOST SUPER USER
Wayne Caswell
Consumer Advocate & Founder of Modern Health Talk
09:45 AM on 01/17/2012
Deregultion leads to free-market capitalism with little to no accountability, and special interest lobbying leads to rules favoring a few versus all, making deregulation worse. What we need is FAIR capitalism with a level playing field rather than tax breaks to attract Big companies because they promise to create jobs and then drive out the smaller competitors that actually do.
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StephenJK
All your consciousness are belong to us
04:02 AM on 01/17/2012
All these arguments they are talking about are absolutely meaningless if population continues to grow. There is NO VIABLE ECONOMIC model that works for 7 billion and rising. Especially capitalism. There comes a point of complete stagnation and growth grinds to a halt. Are we willing to see that through? When resources become so scarce that the only people who can afford any of it are the uber-wealthy? It all sounds like pure insanity to me. Fix this, fix that and we'll be good to go. Yeah, right. More like, have more wars, spread more fabricated diseases, encarcerate more people, divide the people sufficiently so as to turn them against one another. Yeah, that sounds more like a viable economic model.
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ChasG
Unborn, unchanging, undying Universe
01:50 AM on 01/17/2012
Fareed is spot on.  Investment in infrastructure and education both create the true wealth of a nation -- it's productivity.
frankieshoes1
lookitupyerdamnedself
05:52 PM on 01/16/2012
Fareed's cure doesn't hold true since the other countries do not have to rely on their own consumption-they rely on ours.
05:17 PM on 01/16/2012
When republicans say the government is the problem and is to big do they realize that THEY are the ones who have made the decisions that have distroyed this economy and the American way of life and it is THEY who are the government.Deregulation started under Reagan was the beginning of the downfall.
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03:57 PM on 01/16/2012
Corporations continue to work toward short term profits, blind to long term effects on their success or needs of the consumer. Most BoD's are made up short sighted investors looking for money now with little care for the long term health of the company. Invest fast and cash out while your ahead is the agenda. The effect of this kind of thinking is a very unstable marketplace. It's the snake eating it's tail.
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Wayne Caswell
Consumer Advocate & Founder of Modern Health Talk
09:38 AM on 01/17/2012
And Interlocking Directorates populate the boards with like minded individuals that act as a heard and follow the same misguided path.
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need-to-know
01:50 PM on 01/16/2012
The concept of investing in the country lays the foundation needed to facilitate economic growth. Both parties have participated in so-called socialism. Education, infrastructure, health care, research and development, space exploration and the military are government investments that benefit all and the cost of these investments should be shared by all. Government debt, waste and inefficiencies are structural problems created by both parties and need to be corrected. It is time to move away form ideologies like conservatism or socialism and move to pragmatic, effective, goal oriented governing.
11:46 AM on 01/16/2012
Capitalism has been on trial since its inception (say 1776 with the publication of Adam Smith's 'The Wealth of Nations'). It has so far defeated all comers, but has lost some of its shine because of the seductive powers of creeping FASCISM and SOCIALISM. Both the GREAT DEPRESSION and the GREAT RECESSION were the direct result of FEDERAL RESERVE meddling in the economy. An unfettered, gold standard CAPITALISM, would NEVER have caused such dire consequences. The current economic debacle is not the trail of CAPITALISM but the full exposure of the consequences of WALFARE STATISM.
05:37 PM on 01/16/2012
It's important to note that Adam Smith started out as a philosopher and ethicist. His seminal work "The Wealth of Nations" was revolutionary but like most texts on economics does not conform to reality. It was spot on when it was describing an agrarian / early manufacturing economy but as the global economy has become increasingly complex it’s less apt to describe reality. When the work was written there was little to no regards to intangible and incidental costs and most "businesses" were too small to make a lasting impact on their environments. Regardless, the principles stood up in a "hard" economy where goods were traded. Present day, in our globalized knowledge-based economy, the world is not as simplistic. Entities are large enough to have great sway over the fortunes of many counterparties and stakeholders (not just shareholders). The intangible goods in the is new economy also make the advancement of one’s own benefit rife for abuse (Enron, derivatives, tech bubble etc.). Adam Smith was talking about the advancement of society through the proliferation of goods and services that bettered our quality of life (through technology, etc.). I doubt he would apply it to some of the more nebulous goods in our economy or that he would ever meant it to apply to such things.
08:48 PM on 01/16/2012
Good posting.

Adam Smith would be appalled and dismayed at Capitalism as it is now practiced.

19th century western economists, those who defined the principles of Capitalism and its efficacy in the industrial revolution also acknowledged a need for successful practitioners of wage-labor enslavement to at least give back most of their gains "for the social good". Hence the birth of modern philanthropy.

And, Adam Smith himself recognized, as did Karl Marx, the tendency of Capitalism to suffer endemically from declining rates of profit during the most robust economic expansions, leading inevitably to recession (and sometimes depression).
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4eva
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11:09 AM on 01/16/2012
We are facing an inevitable financial collaps of an unsustainable economic model ... perpetual growth ... (which both major political paries wholeheartedly adhere to).

Yet we continue to distract ourselves day in and day out with the same worthless ideas that got us here and futile pastimes.
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David Hundley
Deep In The Heart of Taxes
09:12 AM on 01/16/2012
As I see it, The Government and the idealogue of out-sourcing American jobs, has removed cirrculation of money in our economy. There is nothing left to enjoy for the working poor. If their plan was to eliminate the middle class, it is working. The only problem is that the middle class was holding the ecomony together and now that is becoming un-raveled, well, frustration and helplessness are the new catch phrases of the 21st century.
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spinotter11
Spinning through life and trying to understand it.
10:22 AM on 01/17/2012
I do hear that a lot, and yet other people say that nothing has changed and that the economy is about the same as it always was. I really wonder which version is true.
01:34 AM on 01/16/2012
When Mort Zuckerman immigrated to America, we were number one in education. He blames our diminished education on unions!

Our Institutions of higher learning, Harvard, Yale, Princeton, Columbia, etc. were designed by Protestants and Deists for Protestants and Deists. Our Institutions of higher learning have experienced a diminish quality of education since there are fewer and fewer Protestants and more and more non-Protestants attempting to teach more and more non-Protestant students. They cannot reach the level of superiority once appreciated. Our country is in decline because our education is in decline. Our country, once number one in education, has been greatly diminished because we have been much too generous to ingrates who were not qualified for the demands of our great institutions.
We should take back our institutions of higher learning and restore them to what they were before we allowed whining ingrates who thought they were 'entitled' to go to our institutions of higher learning for which they were unqualified. We have suffered the consequence of that colossal mistake! Our schools will also be restored once our teachers are exposed to a 'very good' education' again!
A professor at Yale called Charles Dickens and Shakespeare anti-Semitic. Sad, Sad, Sad! I weep for my country and institutions of higher learning!
08:52 PM on 01/16/2012
someone needs to tell Mr. Zuckerman to put a lid on it. This 'one-note-Johnny' is beginning to wear a little thin.
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spinotter11
Spinning through life and trying to understand it.
11:18 AM on 01/17/2012
It's deeper than only education, although that is an excellent example of our nation's precipitous fall. For me, it has nothing to do with Protestants or non-Protestants. All human beings are capable of great achievement. Asian-Americans outdo all the whites, Protestant or not, because their culture is imbued with respect for learning. Our entire society is drowning in a sea of greed and avarice - it values money above all other values - such a society can not long endure, and should not.
oilfield
large employer per obamacare
11:12 PM on 01/15/2012
stimulus
1. allow for individuals to write off travel/vacations for the next 2 years on their federal taxes.
2. increase 179 deductions for equipment to 5 million this year
3. allow for any us expansion of facilities to be deductible 100% the first year up to any amount for 2 years (so if proctor and gamble want to build a new plant, they can take it out of this years bottom line)
4.allow individuals to write off "help" that they hire, this saves the individual taxes and makes it hard for the cash workers to not pay their own taxes.
5. let folks write off 100% the cost of a remodel this year on their personal homes from their federal taxes. gets construction going immediately, and increases local governments tax rolls
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missprissanna
the weight of the news nearly broke my back
11:32 AM on 01/16/2012
just like cash for clunkers, homeowners tax credit, tax cuts, etc..., none of these things help the long term unemployed and under employed.....all of your suggestions help those who don't need anymore help, no need to argue it will trickle down, clearly all that's trickling down is more and more job losses....

big business and the have mores really don't deserve any more incentives to invest in our country...soon we will be paying them just to breath....while the rest of us struggle with lower pay, longer hours and no access to homes, education or health care....

write off travel and vacations? really? no doubt mr small manufacturing business owner you do business on all your travels and already write it off....that's what the elites do...the working class hasn't been able to afford travel or vacations for years...
oilfield
large employer per obamacare
10:05 PM on 01/16/2012
you must be a fan of waiting on government mailbox money.....you guys forget that unemployment was 4-5% not too long ago. write off vacations...why should business owners be the ones that get that luxury? vacation is a great way to spread cash around, a lot more efficiently than government checks. do you think rich folks are the ones remodeling their houses? folks that cant afford new houses remodel....i am about to build a new home.
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Kai-HK
Don't Share My Wealth! Share My Work Ethic!
08:27 PM on 01/15/2012
Free-Market Capitalism is not the problem, interference by government in free market capitalism is...
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04:14 PM on 01/16/2012
Government would not have to "interfere" if Corporations would stop focusing on short term financial performance and start working toward long term success that considers the needs of consumers and society. Most BoD's are looking for a fast cash. Get in quick, then cash out. Financial stability does not come from that kind of thinking. Free-market capitalism is not the problem and government doesn't have to be the problem. It's the way corporations define value creation thats the problem. It's an outdated business model that should have slowly morphed over the last 110 years into a more progressive and sustainable model by now. A model that could offer much more profit and innovation while improving society at the same time.
This American
An end to all this nonsense
08:53 PM on 01/16/2012
This is a very important point. It has long been the strategy of collectivists to interfere with a market, which inevitably causes problems, the blaming the problems caused not on the interference, but on either capitalists or capitalism itself, thus providing the rationale for more interference, or as is the case of the OWS clowns, expropriation of private property.
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HUFFPOST SUPER USER
Under Fed yet Fed Up
Always great distaste for both political parties
06:52 PM on 01/15/2012
To believe that capitalism s the problem demonstrates a lack of understanding. The regulations, ot lack thereof, underlying capitalism are the problem.
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FeralForever
I'm watching you...so play nice
04:51 PM on 01/15/2012
Dear Ms. Huffington: Women are not represented in our gov't and now I see they are not represented in your soluton to fix capitalism. You chose a male judge, business manager and marketing head to figure out what is happening in real families on the ground. Let the mothers speak of their hardships and then we may have direction.

Women spend the bulk of money for their families, yet we still have no say in laws that govern our very bodies. It is all done by men.

Women need jobs. They need them just as much as men because 63% of women do not recieve child support. Why do you just center on jobs for males???? What can be more important than having a job to support your family if the man has abandoned his resposibilities??? Children count in this world, if you ask me. Sometimes, they have nothing but their mother. Let's think of our future.