The focus of the November issue of Associate! is Rethinking Capital. Somewhat a ‘mythical beast’ of economic thinking, the nature of capital is not so easy to define or characterise. For most people it is only about finance. Moreover, through its association with ‘capitalism’ for some the reputation of the word capital has acquired a certain negative connotation. It can however be seen in a different light, as something both ephemeral and concrete: the counterpart of capacities.
This month’s lead piece, Capital = Creative Human Spirit by Folkert Wilken first describes the anti-social urge for capital ownership in pursuit of self-interest. He then suggests how this might be remedied by linking capital to the creative human spirit, whence originate the new insights and innovations on which social and economic life depend.
A Sign of Our Time looks at a new form of investment known as Social Impact Bonds which reward social outcomes. Not without problems, the bonds nevertheless may be seen as heralding a wider perspective on what constitutes investment and how capital can become productive.
In Rebalancing Economic Life, Ro Naastepad explores the phenomena of false capital, hoarding and juridical views of capital contrasted with economic. She compares the approach of Keynes and Steiner and asks: ‘What justifies the formation of capital, if it is not matched by the creation of economic values?’
On p.5 Linda Christian’s paper on Multiple Portfolio Theory and Beyond, recently published by RSF Social Finance in San Francisco, is reviewed by Christopher Houghton Budd. He ponders its analysis in relation to the work of Rudolf Steiner.
On the AE-Exchange pages various items provide a sense of how the themes of associative economics and today’s realities can be seen to speak to one another.
Accounting Corner this month rounds off the issue with the challenging thought that assets are for expending (rather than hoarding).
