Harold Meyerson asks why the economy [has] ceased to reward work…. “Anyone seeking a more fundamental answer should pick up the September issue of the Harvard Business Review and check out William Lazonick’s seminal essay on U.S. corporations, ‘Profits Without Prosperity’.” Cross-posted…
Uncategorized
The 1 percent’s devious new scheme: How CEOs are getting rich at your expense
An expert explains our growing obsession with stock buybacks — and how they’re driving U.S. income inequality purpose: to manipulate a company’s stock price. And, with ample stock-based pay through which they can realize gains from a volatile stock market,…
From the Editor: A Call for Courage
by Adi Ignatius, Editor in Chief Harvard Business Review It’s been five years since the official end of the Great Recession, yet the U.S. economy continues to lag. True, corporate profits are healthy, and the stock market has soared—but most…
Patient capital is a virtue
In his blog post as part of FT Alphaville’s Mission Finance series, William Lazonick argues that stock buybacks and dividends are the mechanism by which financial interests, including top executives, reap gains that should be going to taxpayers and workers. Whenever…
Why Germany Dominates the U.S. in Innovation
AIR associate Dan Breznitz summarizes why Germany is outcompeting the United States as an innovative economy: Reading the headlines, you might think that the most urgent question about national success in innovation and growth is whether the U.S. or China…
One of CEOs’ Most Powerful Tools Is Starting to Look Dull
In a Time magazine article on May 21, Rana Foroohar cites and quotes Bill Lazonick’s research on buybacks : A lot has been made in recent years of the record amount of corporate cash on the balance sheets–around $2 trillion…
Stock buybacks surge: Is that a good thing?
In this May 29 USA TODAY article, columnist John Waggoner interviews theAIRnet president William Lazonick and refers to his work on buybacks : According to Wall Street legend, a speculator named Daniel Drew got his start by driving cattle into Manhattan,…
Why Buffett Should Vote ‘No’ on Coke
On April 24, Rana Foroohar’s interview with William Lazonick on the effects of buybacks on corporate compensation and inequality appeared on Time Magazine: The discussion over inequality is all the rage these days, and it’s been given a new wrinkle…
Share buybacks let income inequality grow
On April 4, journalist Eric Reguly’s interview with theAIRnet president William Lazonick on the issue of share buybacks in relation to growing inequality appeared on The Globe and Mail : Raising taxes is the logical answer, and taxes have indeed…
