Why Do Such Capital Inequalities Exist Today?


Terence TSE

Professor of Finance, ESCP Europe
WikiStage ESCP Europe 8 - London

WikiStage ESCP Europe 8 - London

London, United Kingdom. 2016

A part of the WikiStage conference series \\\"The Good in Finance\\\" with events at ESCP campuses in London, Berlin and Paris.

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Dr. Terence TSE speaks for the flip side of this debate. He is Professor of Finance at ESCP Europe.

"Like fire, finance can be a good servant or a very bad master."

"Between land, labour and capital, one thing that is not shrinking or flattening is capital. Its role and significance is tremendously bigger than before."

"Even though overall level of GDP is rising and economic pie is getting bigger and bigger, the middle income class is actually earning less and less. Why is this the case? Because of automation: machines started to take over those jobs that were traditionally held by the middle income class."

"Think about Uber - who actually finances the taxi cars? The car drivers, because they now have to take a loan to buy a car, the financial risk is on them. Where is the financial gain going? - to Uber. "