Overcapitalization
Overcapitalisation, or overcapitalization, refers to an economic phenomenon whereby the value or price of an asset is superior to its ‘real’ value, however difficult to define, therefore putting a strain on attempts to obtain a reasonable return on investment. This is especially the case when capital goods are at stake which are necessary to engage in the production of goods or delivery of services (e.g. agricultural holdings, industrial plants, etc.). It is less the case with those contemporary financial instruments that are valued not for their returns, but for their potential earnings upon resale. Overcapitalisation is closely related (in causes and consequences) to assets inflation. As the financialisation of the economy has led to the monetisation (also called ‘securitisation’) of many non-financial assets, such as real estate, infrastructure, etc., overcapitalisation has become rife, with deleterious consequences at the level of firms (struggling to achieve an unreali ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Return On Investment
Return on investment (ROI) or return on costs (ROC) is the ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment's gains compare favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.Return On Investment – ROI , Investopedia as accessed 8 January 2013 In economic terms, it is one way of relating profits to capital invested. Purpose In business, ...[...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Capital Goods
In economics, capital goods or capital are "those durable produced goods that are in turn used as productive inputs for further production" of goods and services. A typical example is the machinery used in a factory. At the macroeconomic level, "the nation's capital stock includes buildings, equipment, software, and inventories during a given year." The means of production is as a "... series of heterogeneous commodities, each having specific technical characteristics ..." "capital goods", are one of the three types of intermediate goods used in the production process, the other two being land and labour. The three are also known collectively as "primary factors of production". This classification originated during the classical economics period and has remained the dominant method for classification. Capital can be increased by the use of a production process (see production function and factors of production). Outputs of the production process are normally classif ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Assets Inflation
Asset price inflation is the economic phenomenon whereby the price of assets rise and become inflated. A common reason for higher asset prices is low interest rates. When interest rates are low, investors and savers cannot make easy returns using low-risk methods such as government bonds or savings accounts. To still get a return on their money, investors instead have to buy up other assets such as stocks and real estate, thereby bidding up the price and creating asset price inflation. When people talk about inflation, they usually refer to ordinary goods and services, which is tracked by the Consumer Price Index (CPI). This index excludes most financial assets and capital assets. Inflation of such assets should not be confused with inflation of consumer goods and services, as prices in the two categories are not directly correlated. The prices of some goods and services such as housing, energy, and food do track closely with some financial assets. The primary beneficiaries of ris ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Financialisation
Financialization (or financialisation in British English) is a term sometimes used to describe the development of financial capitalism during the period from 1980 to the present, in which debt-to-equity ratios increased, and financial services accounted for an increasing share of national income relative to other sectors. Financialization describes an economic process by which exchange is facilitated through the intermediation of financial instruments. Financialization may permit real goods, services, and risks to be readily exchangeable for currency, and thus make it easier for people to rationalize their assets and income flows. Financialization is tied to the transition from an industrial economy to a service economy, as financial services belong to the tertiary sector of the economy. Specific academic approaches Various definitions, focusing on specific aspects and interpretations, have been used: * Greta Krippner of the University of Michigan writes that financializ ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Ownership Equity
In finance, equity is an ownership interest in property that may be subject to debts or other liabilities. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets owned. For example, if someone owns a car worth $24,000 and owes $10,000 on the loan used to buy the car, the difference of $14,000 is equity. Equity can apply to a single asset, such as a car or house, or to an entire business. A business that needs to start up or expand its operations can sell its equity in order to raise cash that does not have to be repaid on a set schedule. When liabilities attached to an asset exceed its value, the difference is called a deficit and the asset is informally said to be "underwater" or "upside-down". In government finance or other non-profit settings, equity is known as "net position" or "net assets". Origins The term "equity" describes this type of ownership in English because it was regulated through the system of equity law that develo ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Karl Marx
Karl Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, political theorist, economist, journalist, and revolutionary socialist. He is best-known for the 1848 pamphlet '' The Communist Manifesto'' (written with Friedrich Engels), and his three-volume (1867–1894), a critique of classical political economy which employs his theory of historical materialism in an analysis of capitalism, in the culmination of his life's work. Marx's ideas and their subsequent development, collectively known as Marxism, have had enormous influence. Born in Trier in the Kingdom of Prussia, Marx studied at the universities of Bonn and Berlin, and received a doctorate in philosophy from the University of Jena in 1841. A Young Hegelian, he was influenced by the philosophy of Georg Wilhelm Friedrich Hegel, and both critiqued and developed Hegel's ideas in works such as '' The German Ideology'' (written 1846) and the '' Grundrisse'' (written 1857–1858). While in Paris, Marx wrote ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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How Societies Choose To Fail Or Succeed
How may refer to: * How (greeting), a word used in some misrepresentations of Native American/First Nations speech * How, an interrogative word in English grammar Art and entertainment Literature * ''How'' (book), a 2007 book by Dov Seidman * ''HOW'' (magazine), a magazine for graphic designers * H.O.W. Journal, an American art and literary journal Music * ''How?'' (EP), by BoyNextDoor, 2024 * "How?" (song), by John Lennon, 1971 * "How", a song by Clairo from ''Diary 001'', 2018 * "How", a song by the Cranberries from ''Everybody Else Is Doing It, So Why Can't We?'', 1993 * "How", a song by Daughter from '' Not to Disappear'', 2016 * "How", a song by Lil Baby from '' My Turn'', 2020 * "How", a song by Maroon 5 from '' Hands All Over'', 2010 * "How", a song by Regina Spektor from ''What We Saw from the Cheap Seats'', 2012 * "How", a song by Robyn from ''Robyn Is Here'', 1995 Other media * HOW (graffiti artist), Raoul Perre, New York graffiti muralist * ''How'' (TV serie ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Jared Diamond
Jared Mason Diamond (born September 10, 1937) is an American scientist, historian, and author. In 1985 he received a MacArthur Genius Grant, and he has written hundreds of scientific and popular articles and books. His best known is '' Guns, Germs, and Steel'' (1997), which received multiple awards including the 1998 Pulitzer Prize for general nonfiction. In 2005, Diamond was ranked ninth on a poll by '' Prospect'' and ''Foreign Policy'' of the world's top 100 public intellectuals. Originally trained in biochemistry and physiology, Diamond has published in many fields, including anthropology, ecology, geography, and evolutionary biology. In 1999, he received the National Medal of Science, an honor bestowed by the President of the United States and the National Science Foundation. He was a professor of geography at UCLA until his retirement in 2024. Early life and education Diamond was born on September 10, 1937 in Boston, Massachusetts. His parents were both Eastern Europ ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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England
England is a Countries of the United Kingdom, country that is part of the United Kingdom. It is located on the island of Great Britain, of which it covers about 62%, and List of islands of England, more than 100 smaller adjacent islands. It shares Anglo-Scottish border, a land border with Scotland to the north and England–Wales border, another land border with Wales to the west, and is otherwise surrounded by the North Sea to the east, the English Channel to the south, the Celtic Sea to the south-west, and the Irish Sea to the west. Continental Europe lies to the south-east, and Ireland to the west. At the 2021 United Kingdom census, 2021 census, the population was 56,490,048. London is both List of urban areas in the United Kingdom, the largest city and the Capital city, capital. The area now called England was first inhabited by modern humans during the Upper Paleolithic. It takes its name from the Angles (tribe), Angles, a Germanic peoples, Germanic tribe who settled du ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |
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Over-exploitation
Overexploitation, also called overharvesting or ecological overshoot, refers to harvesting a renewable resource to the point of diminishing returns. Continued overexploitation can lead to the destruction of the resource, as it will be unable to replenish. The term applies to natural resources such as water aquifers, grazing pastures and forests, wild medicinal plants, fish stocks and other wildlife. In ecology, overexploitation describes one of the five main activities threatening global biodiversity. Ecologists use the term to describe populations that are harvested at an unsustainable rate, given their natural rates of mortality and capacities for reproduction. This can result in extinction at the population level and even extinction of whole species. In conservation biology, the term is usually used in the context of human economic activity that involves the taking of biological resources, or organisms, in larger numbers than their populations can withstand. The t ... [...More Info...]       [...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]   |