Long-term Capitalism

Meeting the Populist Challenge

  • Why it matters

    Why it matters

    Business executives’ short termism ultimately lowers growth and leads to fewer jobs and one way leaders can help politicians combat populism is by embracing long term goals.

  • Facts


    • Generation, a youth unemployment skills-building program that McKinsey & Company helped launch in specific industries across five countries, has placed more than 10,000 graduates in jobs since 2015.
    • In a recent McKinsey survey of senior executives from around the world, only 37 percent of executives believed that their company’s culture encouraged long-term thinking.
    • According to preliminary estimates from the McKinsey Global Institute, short-termism has cost the US economy an additional 5-6 million jobs over the past 15 years, and more than $1 trillion in unrealized GDP growth.
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Donald Trump
Nothing undercuts the case for globalization more than the specter of wealthy individuals and institutions evading taxes. Source: AP

Capitalism is the greatest engine for prosperity that the world has ever seen. But the democratic institutions that create the space for business leaders to operate have not kept up with accelerating economic and technological change; nor have they made the necessary adjustments to ensure that enough people benefit from the system to which they all belong. All leaders should keep these two thoughts firmly in mind as they respond to 2016’s populist backlash – manifested in Brexit, Donald Trump’s election victory in the United States, Italy’s failed constitutional-reform referendum, and so forth.

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