Business schools and economists relentlessly teach and preach that a company’s only responsibility is to maximize the wealth of shareholders – an essential framework of capitalism.
This is with a hope that when shareholders make money, they normally put it back into the economy as investments, fueling the employment.The problem is, in 1960s, the shareholders took only 30% of Corporate profits (about 1.7% of GDP) but in 2010, the shareholders are taking 50% of corporate profits (over 4.7% of GDP) This change from 1.7 to 4.7% translates into $600 billion a year.
This is staggering number. This amounts to have every working adult receive $3500 a year bonus. Three years of this amount can pay off ALL STUDENT LOAN in this country. Or this could cover every american HEALTH CARE COSTS.
