Shareholder Value and What it Means for America (Economics)

Shareholder Value and What it Means for America (Economics)

Shareholder Value and What it Means for America takes an in-depth look at shareholder value and its unintended consequences for the United States. Starting with President Reagan’s trickle-down economics and labeling government as the problem for the country’s ills, an environment was created in the early 1980s surrounding the positive aspects of corporate America and shareholder value. What was not realized, was that embracing shareholder value would lead to greater inequality, slower economic growth and greater political influence by the very wealthy. This study details the steps that lead to greater inequality and slower economic growth by examining the manner in which corporations interact with the taxing authority, regulatory authorities, Congress, and the legal system. The study also examines the ethics of corporations and the public perception of our elected officials and helps explain why shareholder value is viewed as more positive than government involvement. The study estimates the economic impacts of government expenditures and private sector expenditures to determine which – if any – have the greater impact on the United States economy. The pandemic of 2020 lay bare the effects of inequality as many lost their jobs while billionaires saw their wealth increase by 50% or more. The acceptance of Shareholder Value in the 1980s led to a society in which the value of government is viewed as secondary to the private sector. Those believing in shareholder value have lowered income taxes for corporations and the wealthy while providing fewer services for the less well-off. The importance of the individual is minimized under the shareholder value philosophy and the election of Donald Trump was merely another step along the path downplaying the role of government. This book traces the path of events since the 1980s and offers suggestions to help restore a sense of balance, fairness and improved economic performance.