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Wall Street Vs. Main Street

May 6th, 2017 · Comments Off on Wall Street Vs. Main Street

The uproar of financial analysts over a wage hike at American Airlines is really illustrative of what has gone wrong with the economy. The details of this case are particularly stunning. But it’s only the logical outcome of how companies have been hardwired the last 4-5 decades, and the negative consequences for the economy are […]

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Tags: Economy

United Airlines: The Structure Behind The PR Disaster

April 14th, 2017 · Comments Off on United Airlines: The Structure Behind The PR Disaster

The United Continental ‘reaccomodation’ of a passenger is a symptom of a deeper structural deficit in the industry. The structure pits passengers against shareholders and the first tend to loose out too much, as there are insufficient forces to keep airlines in check in reducing customer comfort. Another result of this is that United shares […]

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Tags: Corporate governance

Is Shareholder Capitalism Actually Good For Shareholders?

February 8th, 2017 · Comments Off on Is Shareholder Capitalism Actually Good For Shareholders?

Since the late 1970s, the concept that firms exist exclusively for creating shareholder value has gained track and it is now firmly anchored by a host of institutions. While it helped boost company profits, it hasn’t led to shared prosperity as there are some negative economic side effects. Most notably though is that the biggest […]

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Tags: Corporate governance

From Value Creation To Value Extraction

October 12th, 2014 · Comments Off on From Value Creation To Value Extraction

When the SEC greatly facilitated corporate share buybacks and executive pay was tied to the stock price, the elements were in place for management to game the system. Stock markets became vehicles for massive extraction, rather than funding, of corporations as these embarked on enormous share buybacks which boosted share prices and executive compensation. While […]

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Tags: Reform Capitalism