"Embedded growth obligations" could distort capitalism and market efficiency
By Hicbd
Wed Sep 1 2021 9:12 am
"Embedded growth obligations (EGOs) are structures built into institutions in times of growth that assume growth will continue. An institution must therefore grow to meet its EGOs, or its leaders must lie about the presence of growth. This compromising of incentives causes institutions to tend towards exploitative or sociopathic behaviors, as their leaders face selective pressures to maintain the status quo."
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