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Now here's the catch: To grow, a company must attract capital, and is required to put capital holders first.
Back in the day, businesses created returns for their capital holders by actually producing value, and capital actually had to take risks to gain that return.
Meanwhile, wage pressures in the workplace enlarge profits for capital holders, thus allowing the winnings of executives and investors to climb.
Additionally, the ultra-rich should pay their employees decently, invest in the future rather than in stock buybacks and dividend maximization, and cut back on the lobbying that continually rewrites market rules in favor of the largest capital holders.
"The big issue for the U.S. is not a lack of [economic] growth but of course the growing income inequality and the share of that growth that is accruing to capital holders as opposed to labor," Bruce Sacerdote, a Dartmouth College economist, said.
This gradual decrease, and final abolition, of taxes on capital distributions reflected ideological differences between the Conservative and Labour parties: the Conservative approach was to distribute profits to capital holders for investment elsewhere, while Labour sought to force companies to retain profits for reinvestment in the company in the hope this would benefit the company's workforce.
Similar(52)
In Vietnam, despite its capital controls, holders of dong find it unusually easy to switch to hard currency or soft metal.
* Says exchanges likely to return more capital to holders.
Only a few days later, ValueAct Capital, the holder of about 5 percent of Gardner, sent a letter to the company agitating for a sale.
"If they hadn't acted pre-emptively prior to the final deadline for the exchange offer, which would have put into doubt the bank holding company status, I think the health of the global financial market would be in question," said David Bullock, a managing director at Advent Capital, a holder of GMAC bonds who encouraged the company to become a bank holding company last fall.
That would mean capital losses for holders of long bonds.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com