Insights #1: Why assessing capitalism through an economic profit lens makes sense

The Crux of Capitalism project calls into question the efficacy of accounting profit measures when assessing a firm’s ability to create value through its current operations. An economic profits measure is advanced instead and is executed at the firm level and then aggregated across firms into sectoral and national totals. Three examples where accounting profits measures obscure the underlying health of firms and capitalist economies are provided here.

14 Sep 2023 · Magaly Abboud, Fabio Bernasconi, Sára Czégé, Camilla Erencin, Simon J. Evenett, Alexander Gruber and Felix Reitz