Over the past few decades, the US economy has undergone a profound change. This change has helped rich Americans get richer. But it has also contributed to growing income inequality and the decline of the middle class. And, in so doing, it has fueled populist anger across the political spectrum and slowed the growth of the economy as a whole. What is this change? The complete embrace of the idea that the only mission of companies is to maximize profit for their shareholders. Talk to people in the money management business, and they'll proclaim this as a law of capitalism. They'll also cite others, including the idea that employees are "costs" and competent managers should minimize these costs by paying employees as little as possible. These practices may help boost stock prices, at least temporarily. But they aren't actually laws of capitalism. They're choices. And they're choices we should revisit if we want to restore a sense of fairness and opportunity in America to reinvigorate our economy. Not long ago, America's corporate owners and managers made different choices — choices that were better for average Americans and the economy. They also had a profoundly different understanding of their responsibilities. "The job of management," proclaimed Frank Abrams, chairman of Standard Oil of New Jersey, in 1951, "is to maintain an equitable and working balance among of the claims of the various directly interested groups… stockholders, employees, customers, and the public at large." By paying good wages, investing in future products, and generating reasonable (not "maximized") profits, American companies in the 1950s and 1960s created value for all of their constituencies, not just one. As a result, the country and economy boomed. Over more recent decades, however, this balance has radically shifted. The stagnation and bear market of the 1970s contributed to the rise of shareholder activism, a trend immortalized in the 1980s by the fictional corporate raider Gordon Gekko in the movie "Wall Street." In that era, American companies had become bloated and complacent, and they needed a kick in the ass. "Greed is good," Gekko declared, firing smug managers and restructuring weak companies. And the nation's beleaguered shareholders justifiably cheered. But 30 years later, Gekko's shareholder revolution is still going strong, and the pendulum has swung too far the other way. Urged on by a vast and hyper-competitive money management industry, American companies now increasingly serve a single constituency — shareholders –while stiffing employees and cutting investments in future products. The most salient illustration of this is the divergence between profits and wages. Corporate profit margins have been rising for 15 years and are now near their highest levels ever. Corporate wages, meanwhile, have been declining for four decades.... http://www.businessinsider.com/time...16-6?utm_source=microsoft&utm_medium=referral
There is great confusion because of the way investment gains are taxed, Capital Gains or not. Take a look: Five Charts Show What Americans Really Pay in Taxes It's more—and less—than you think. http://www.bloomberg.com/news/artic...harts-show-what-americans-really-pay-in-taxes But then you have Panama Papers https://www.elitetrader.com/et/threads/the-most-massive-leak-of-all-time.298988/page-9#post-4284218 TAX POLICY CENTER BRIEFING BOOK Key Elements of the U.S. Tax System Q. How are capital gains taxed? A. Capital gains are profits from the sale of a capital asset, such as shares of stock, a business, a parcel of land, or a work of art. Capital gains are generally included in taxable income, but in most cases are taxed at a lower rate. http://www.taxpolicycenter.org/briefing-book/how-are-capital-gains-taxed
Non of the candidates for 2016 Presidency will be able to change this culture. Trickle down economics is the golden standard from which the US at its core operates philosophically - both Democrats and Republicans, because they control the framing of issues. I have no idea what will change this culture except a true revolution.
App makes it easier for businesses to fight minimum wage hikes http://money.cnn.com/2016/08/14/technology/minimum-wage-engage-app/index.html
Chris Christie loves to eat , but he doesn't want his constituent's children to eat. Chris Christie vetoes bill raising New Jersey’s minimum wage to $15 per hour PENNINGTON -- Gov. Chris Christie on Tuesday vetoed a proposal to boost New Jersey's minimum wage to $15 an hour. The governor visited a Pennington grocery store to make remarks and announce the veto the legislation. It's the second time during his time as governor that Christie rejected a minimum wage hike sent to him by the state's Democratic-controlled Legislature. He argued more employees would be replaced by automated kiosks at small businesses if the state continuous to hike its minimum wage. "That's the way of the future if we continue to do this really radical increase with the minimum wage," Christie said. "All of this sounds great, raising the minimum wage, when you're spending someone else's money," he said. "It should bother you because when you come into Pennington Market your food is going to be more expensive."
There is an upside. Every place that implements the $15.00/hour minimum wage is sending jobs and profit out to the suburbs and satellite cities who really need it. I mean, say I'm sitting down on 4th Avenue in Seattle getting my car washed at the Elephant Car Wash. I'm a bit hungry so I'm thinking of some place to go get some lunch. I can either go into downtown or just go up the hill into West Seattle. I know the cost will be a little more reasonable in W.Seattle because of their sensible minimum wage so I go there. That same decision is being made millions of times a day in Seattle and downtown business are feeling the pain. Now the entire state of California has gone to $15.00 and you can't just decide to have lunch in the next town. So the decision becomes "ok, I'm leaving California" and that is what huge numbers of people are doing. If I have a national or international business I'm not going to be looking to expand into unfavorable economies, I'll expand first into favorable locations. In the end California will lose countless jobs and enormous tax receipts and Jerry Brown knew it when he was signing the bill. At least Chris Christie insists on doing the right thing for his state. Liberals: Destroying the World one regulation at a time...
I estimate that by 2050, 35% of the jobs that are done by people today are gone forever. Unemployment of first world countries at 25% will be "the new normal". In fact, it remains to be seen what "first world" means in 2050. People say there will be new jobs replacing the old ones. What makes them think those will be done by human beings? AI will eliminate 6 percent of jobs in five years, says report http://www.cnbc.com/2016/09/12/ai-will-eliminate-six-percent-of-jobs-in-five-years-says-report.html
"Liberals: Destroying the World one regulation at a time..." Liberals don't really care if they "destroy the word"... all they care about is RULING... even if it's over the ashes of their own destruction!