Increase Wages from Corporate Revenues

This past weekend I must have come across a dozen different groups talking about income inequality and how we need a basic income for working and non-working people. I agree, and I want to point all of your attention to how publicly traded companies have been spending revenues over the past 10 years. They've been artificially pumping up their stock price with "stock buybacks" at the average of 55% of their revenues. That's important people, this is money that is not going back to the stakeholders (everyday people) who pour their input to the company's overall productivity.

In my opinion this is one of the core economic theory problems stoping every-day people's wages from rising over the past 40 years. Part of this problem is the way that executive compensation contracts are designed to tie executive pay to increases in stock price. It has both inflated the stock market and suppressed the wages with brut force. Below is an example of how much money working people have made while the corporate productivity has scaled.

I'm not suggesting that there is a way to regulate the way private or public companies spend on themselves or their growth. I think that we have a more fundamental fix to the distribution of productivity, and that involved giving people ownership of their input to corporate productivity. All employees and consumers cater to the bottom line, and by giving them ownership of their piece of the productive pie, they can legally enforce their entitlement to the 55% of corporate revenues that goes to artificially sustaining a share price that is not directly tied to operational productivity.

Here are more short blogs on this topic 08/2016 HERE 12/2016.

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James Felton Keith

Fighting for Inclusionism

Supported by JFK Organizers

Made with  ❤️  in The Village of Harlem

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