Pocketing Profits or Reinvesting Them (debate on William Lazonick, “Profits Without Prosperity”)

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“Corporations have gone from retaining about 60 percent of their profits in the 1970s, to about 10 percent today, William Lazonick wrote in a recent Harvard Business Review article. Profits are instead being used to pay dividends to investors and to buy back stock to boost its price, benefiting the company’s executives.”…

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