Doctrinal Roots of Short-Termism

This chapter examines short-termism in the United States and connects it with doctrinal antecedents in the received neoclassical theory. Specifically, it argues that capital in wealthy, post-industrial societies must be defined relative to preferred outcomes for which capital assets are to be deployed. This is consistent with the neoclassical profit Tacuna’ that in disequilibrium conflates the ‘productivity’ of asset placements by capitalists with the ‘non-productivity’ of asset placements by rentiers. Also conflated are the rewards to the respective classes of capitalists and rentiers. Consequently, the unbridled pursuit of self-interest in wealthy, financially sophisticated economies leads frequently to rentseeking, ‘pseudo-capitalist’ behaviours in which institutions and individuals ‘untether’ themselves from the conventional capitalist relationship: holding capital ‘patiently’ over the longer term. In sum, the pursuit of self-interest may not articulate with the attainment of the common good when financial innovations enable pseudo-capitalists to shed asset positions prematurely.