A board and governance level issue that doesn’t get nearly enough attention is whether firms are being run as value creators or value extractors. As economist William Lazonick points out, absent real pushback, it is all too easy for management to simply extract value from companies – value that was built up patiently, sometimes over years, by innovators. This is very bad news for our society as we shall see.
EXCELLENT ARTICLE. I think there are more details required. The discrepancy is explained in the details which are hidden. As an example labor intensive workers pay scale has stalled, this is attributed to the manufacturing shift to lower labor forces in other countries and the lack of local recapitalization, minimalistic import taxes, as well as the taxation system biased to the corporate entity and not to the employees in the country. Great examples of this include big tech companies that employ out of country employees or outsource jobs while mainting minimal employees in country but still benefit from flawed corporate taxation. As an example I have an Apple iphone and basically other countries workers touch the production than actual USA workers, this factor is probably x1000.
Non labor jobs have seen their income rise for example software engineers in social media since the intellectual property has shifted from hardware to software, however this will stall very soon if not already, since other countries are increasing people investment in education.
Perhaps the deepest area of concern and most impactful is the loss of cultural and therefore society identity, both have rapidly declined over the last 50 plus years in western countries. So while the left and that includes the so called intellectual elites attempt to propose schemes to redistribute wealth, their policies are deeply flawed as they attack the outcome and not the root causes.
Until we can be honest about the problem and root cause we cannot come up with long lasting solutions that benefit all particpants in a countries economy, politically farming workers for their votes to gain elected power to create radical policy only further widens the pay gap it definitely does not reduce it in a sustainable manner. Distracting the voting masses only takes you so far, until they wake up and realize ....bad choices means bad outcomes.
EXCELLENT ARTICLE. I think there are more details required. The discrepancy is explained in the details which are hidden. As an example labor intensive workers pay scale has stalled, this is attributed to the manufacturing shift to lower labor forces in other countries and the lack of local recapitalization, minimalistic import taxes, as well as the taxation system biased to the corporate entity and not to the employees in the country. Great examples of this include big tech companies that employ out of country employees or outsource jobs while mainting minimal employees in country but still benefit from flawed corporate taxation. As an example I have an Apple iphone and basically other countries workers touch the production than actual USA workers, this factor is probably x1000.
Non labor jobs have seen their income rise for example software engineers in social media since the intellectual property has shifted from hardware to software, however this will stall very soon if not already, since other countries are increasing people investment in education.
Perhaps the deepest area of concern and most impactful is the loss of cultural and therefore society identity, both have rapidly declined over the last 50 plus years in western countries. So while the left and that includes the so called intellectual elites attempt to propose schemes to redistribute wealth, their policies are deeply flawed as they attack the outcome and not the root causes.
Until we can be honest about the problem and root cause we cannot come up with long lasting solutions that benefit all particpants in a countries economy, politically farming workers for their votes to gain elected power to create radical policy only further widens the pay gap it definitely does not reduce it in a sustainable manner. Distracting the voting masses only takes you so far, until they wake up and realize ....bad choices means bad outcomes.