Risk Capitalism

Extracted Attributes

• Core Principle

  High financial stakes and bold ventures in expectation of substantial returns

• Primary Contrast

  Crony Capitalism (characterized by flawed executive compensation and share buybacks)

• Key Modern Example

  Elon Musk's $56 billion Tesla compensation package

• Sociological Origin

  Risk Society (Risikogesellschaft)

• Socialist Definition of Risk

  Actual exposure to damage or danger to one's state of being

• Capitalist Definition of Risk

  Capital spent in expectation of a return above and beyond the capital's value

Timeline

• The term 'Risk Society' is coined by Ulrich Beck to describe modern societal organization in response to risk. (Source: Wikipedia: Risk society)

  1980-01-01

• The concept of Risk Society gains popularity due to its links to modernity and growing environmental concerns. (Source: Wikipedia: Risk society)

  1990-01-01

• Harvard Business Review publishes 'Global Capitalism at Risk,' discussing threats to the market system and wealth creation. (Source: HBR: Global Capitalism at Risk)

  2011-09-01

• A Delaware court voids Elon Musk's $56 billion Tesla pay package, sparking a debate on Risk Capitalism versus Crony Capitalism. (Source: Document 3f435d8e-7f67-4be0-a2d8-51c7c89a9071)

  2024-01-30

Risk society

Risk society is the manner in which modern society organizes in response to risk. The term is closely associated with several key writers on modernity, in particular Ulrich Beck and Anthony Giddens. The term was coined in the 1980s and its popularity during the 1990s was both as a consequence of its links to trends in thinking about wider modernity, and also to its links to popular discourse, in particular the growing environmental concerns during the period.

Web Search Results

• [All] What is your definition of "risk"? : r/CapitalismVSocialism

  To capitalists it seems that a risk is the capital you spend in expectation of a return above and beyond that capital's value. It's purely an economic term. If you spend capital with no expectation of a return then you haven't risked anything. If you spend the same amount of capital with an expectation of a return then you have risked that capital. It doesn't matter if that capital is material to maintaining your state of being. You could risk $1000 out of $1m you have in the bank and that [...] would still be a risk to a capitalist. [...] To socialists I suspect a risk is actual exposure to damage or danger to your state of being. Therefore a capitalist who risks $1000 but had $1m has taken no risk whatsoever. Even if a capitalist risked their elevated lifestyle at the threat of having to get a job and live a frugal lifestyle, that would still not be considered a risk, because you are never being exposed to any threat of damage or danger. In fact the more you have the less risk you take because the greater the cushion you have

• [PDF] Capitalism and Risk: Concepts, Consequences, and Ideologies

  INTRODUCTION. Politically charged claims about both “capitalism” and. “risk” became increasingly insistent in the late twentieth century.

• Risk capitalism, crisis of socialization and loss of civilization

  IDEAS home ### Browse Econ Literature ### More features IDEAS home # Risk capitalism, crisis of socialization and loss of civilization ## In: Handbook of the International Political Economy of Production ## Author ## Abstract ## Suggested Citation ## Download full text from publisher ## More about this item ### Keywords ### Statistics ## Corrections [...] If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. [...] All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:15560\_24. See general information about how to correct material in RePEc.

• Global Capitalism at Risk: What Are You Doing About It?

  SKIP TO CONTENT Economics|Global Capitalism at Risk: What Are You Doing About It? Subscribe Economics # Global Capitalism at Risk: What Are You Doing About It? by Joseph L. Bower, Herman B. Leonard and Lynn S. Paine From the Magazine (September 2011) Post Buy Copies Leer en españolLer em português Post Buy Copies [...] Market capitalism has proven to be a remarkable engine of wealth creation, but if it continues to function in the next 25 years as it has in the past 25, we are in for a violent ride or, worse, a serious breakdown in the system itself. That sounds dire, and it is. The threats to market capitalism are diverse. When the gap between the rich and the poor continues to widen, when millions of have-nots migrate from poor countries to rich ones and wealthy nations respond with increasingly strident [...] A version of this article appeared in the September 2011 issue of Harvard Business Review. Post Buy Copies Read more on Economics or related topics Financial markets and Capitalism ## Partner Center

• Crony capitalism - Wikipedia

  Kahn, J. S.; Formosa, F. (2002). "The Problem of 'Crony Capitalism': Modernity and the Encounter with the Perverse". Thesis Eleven. 69: 47–66. doi "Doi (identifier)"):10.1177/0725513602069001004. S2CID "S2CID (identifier)") 144254578. Davis, Gerald F. (2003). "American cronyism: How executive networks inflated the corporate bubble". Contexts. 2 (3): 34–40. doi "Doi (identifier)"):10.1525/ctx.2003.2.3.34. [...] Vaugirard, Victor (2005). "Crony Capitalism and Sovereign Default". Open Economies Review. 16: 77–99. doi "Doi (identifier)"):10.1007/s11079-005-5333-0. S2CID "S2CID (identifier)") 154229321. James, Harold (2008). "Family Values or Crony Capitalism?". Capitalism and Society. 3. doi "Doi (identifier)"):10.2202/1932-0213.1031. S2CID "S2CID (identifier)") 154708681. SSRN "SSRN (identifier)") 2209143. [...] Wei, Shang-Jin (2001). "Domestic Crony Capitalism and International Fickle Capital: Is There a Connection?" (PDF). International Finance. 4: 15–45. CiteSeerX "CiteSeerX (identifier)") 10.1.1.133.3751. doi "Doi (identifier)"):10.1111/1468-2362.00064. Archived (PDF) from the original on October 9, 2022. Kang, David C. (2003). "Transaction Costs and Crony Capitalism in East Asia". Comparative Politics. 35 (4): 439–58. doi "Doi (identifier)"):10.2307/4150189. JSTOR "JSTOR (identifier)") 4150189.