The executive increases the return to shareholders, in return they increase the executive(s) salaries; and so it goes. The Trump tax cuts were used by corporate executives to buy back shares; increasing the stock value, sending more along to the shareholders who then reward the executive(s) with bigger salaries. What’s missing? The workers. Time was when industrial work forces were huge and unions were strong; when the unions had lots of clout with the democratic party, ergo with government; when they could leverage their clout into a fairer share. Having little leverage, workers are left to suck hind teat. Consequently, more and more of the returns from business go to the shareholders, bondholders, and executives. If workers were guaranteed a fair
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Ken Melvin considers the following as important: Taxes/regulation, US EConomics
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The executive increases the return to shareholders, in return they increase the executive(s) salaries; and so it goes. The Trump tax cuts were used by corporate executives to buy back shares; increasing the stock value, sending more along to the shareholders who then reward the executive(s) with bigger salaries. What’s missing? The workers. Time was when industrial work forces were huge and unions were strong; when the unions had lots of clout with the democratic party, ergo with government; when they could leverage their clout into a fairer share. Having little leverage, workers are left to suck hind teat. Consequently, more and more of the returns from business go to the shareholders, bondholders, and executives.
If workers were guaranteed a fair share, we wouldn’t be in the disparity we are in. Time was when the unions could ensure that some of the work force got something approximating a fair share. That was then. Needed today are laws that guarantee the workers a fair share of all profits. Corporate accounting, subject to rigorous review, or tax filings could be used. All corporate and business licenses would be subject to compliance.
In the case of start-ups, in lieu of, until, profitability, the workers would receive some minimum wage, plus stock and/or stock options.
As for workers having a say: Workers would have at least 30% representation on all corporate boards and means of input to management in sole proprietorships.
For the from partial to fully automated production facilities, an assessment as to the return on investment in automation would be made and a generous allowance for return on such investment would allowed. Return beyond that allowance would taxed separately a high rate. The revenues from this tax would be dedicated to the enhancement of the social safety net, to provide guaranteed income, etc.