The Butt of a Bad Joke
Jack Welsh coined the phrase “shareholder value.” Two pieces of the puzzle tilted in capitals favor from this four decade ago event. First, was an emphasis upon the share price. The second was the compensation packages for management.
Washington was not an innocent bystander. Tax cuts, trade policy, regulation all favored capital over labor. Unions were busted. Entrepreneurs were elevated to the mythic status of being job creators.
As a result income inequality is at an all time high.
Some will argue that taxing the very wealthiest of us and spending that money on programs to assist the other 99% of the population is this thing called “income redistribution.” A vocal well paid minority is opposed to this.
We increased shareholder value, we provided good products to customers, we ran executive compensation up 400% but we didn’t compensate labor.
You slime people as anti-business? That is not true. Most of us likes to do good business. Or,you can take your profits to Washington and buy more favors, cut more deals, or elect more politicians to your cause and keep your fingers crossed and hope.
But, one way or another. You either begin disbursing more of your profits to labor voluntarily or you will be forced by pitchfork politics to surrender more of your enterprises profits in the form of taxes.
It is capitalism finding a healthy balance. Our democracy is threatened by all of this. Middle class wages decline, the middle class shrinks and pretty soon we don’t live in a country we even recognize. Doesn’t that feel like what’s been happening? Isn’t that the truth of the way things are now?
If you oppose redistribution you should have been yelling at the top of your lungs while the rest of this was going on right under your own nose. And now that the bill has come due don’t insist there can be no new taxes, don’t pretend the banks don’t need any further regulating, or that the Boards of Directors of a publicly traded entity have treated labor fairly. They had a duty to balance these varied competing forces and provide our society with a mutually profitable outcome. They failed and for not the first time in history they’ll be taxed into compliance.
Eventually the bill comes due. Welcome to life…