“Predatory value extraction is causing sagging productivity and growth problems at many US companies that are trying to compete globally, Dr. William Lazonick, co-founder and president of The Academic-Industry Research Network, told Real Vision’s The Interview. He said sustainable prosperity…
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Russell Reynolds identifies corporate governance trends for boards in 2020
By Cydney Posner “Consultant Russell Reynolds Associates opens this report on 2020 corporate governance trends by observing that, “[f]or the first time, in 2020, we see the focus on the ‘E’ and the ‘S’ of environment, social and governance (ESG) as the…
At Boeing, stock buybacks are blurring the reality
By Anthony Bondain “Boeing had probably the worst year in its history in 2019. At least in its recent history. And it’s probably not over yet. The company has managed the B737 MAX crisis in a catastrophic way. And obviously,…
Party like its 1929
By Steven Orr “It seems every day we see the market making new highs. The president continues to tout job numbers. Back on the campaign trail, he said we would be sick of winning.”… [Click HERE to read the full article]
Why Stock Buybacks Are Dangerous for the Economy
By William Lazonick, Mustafa Erdem Sakinç and Matt Hopkins “Even as the United States continues to experience its longest economic expansion since World War II, concern is growing that soaring corporate debt will make the economy susceptible to a contraction that could get out…
Prescription drug costs in Americans are sky-high. And yes, Big Pharma greed is to blame
“As debates around drug prices heat up on the presidential campaign trail, the House of Representatives voted in December to pass Speaker Nancy Pelosi’s drug bill, which contains key provisions allowing the government to negotiate lower prices on at least 50 drugs each year.”……
Cut costs the hard way: Put people before short-term profit
By Peter Georgescu “Wall Street has warm feelings for Lowes at the moment. It’s no wonder: shareholder primacy dominates its corporate culture now as its new CEO, Marvin Ellison, has chosen to lower expenses by firing thousands of workers and…
Is the Most Unproductive Firm the Foundation of the Most Efficient Economy? Penrosian Learning Confronts the Neoclassical Fallacy
By Institute for New Economic Thinking (INET) “Edith Penrose’s 1959 book The Theory of the Growth of the Firm [TGF] provides intellectual foundations for a theory of innovative enterprise, which is essential to any attempt to explain productivity growth, employment opportunity, and income…
How will companies and CEOs meet the challenges of corporate social responsibility
By Cydney Posner “This PubCo post discussing the Business Roundtable’s adoption of a new Statement on the Purpose of a Corporation concluded by observing (rhetorically) that the question teed up by the new BRT Statement was what all of the signatories would actually do…
Shareholder capitalism and the slow death of U.S. manufacturing
By Marshall Auerback “It’s part of the American experience to find yourself in an elevator, in an airplane terminal, or at home, looking at a screen with stock numbers whizzing by, and people yammering about how America is somewhere on…
