Japan is a good example of the failure of Keynesian economics in the
globalized era. The country spent hugely on public works projects in
the 1990s, digging an enormous debt hole for its future citizens (170
percent of GDP; compare to 60 percent of GDP for the U.S. (
href="https://www.cia.gov/library/publications/the-world-factbook/">source)).
What was the result? Its largest corporations invested substantially
in growth and created a lot of new jobs... in China, Thailand,
Vietnam, etc. The domestic economy stagnated.
Investor Representation on Public Company Boards
Right now the shareholders of a public company are at the mercy of
management. Without an expensive proxy fight, the shareholders cannot
nominate or vote for their own representatives on the Board of
Directors. The CEO nominates a slate of golfing buddies to serve on
the Board, while he or she will in turn serve on their boards. Lately
it seems that the typical CEO's golfing buddies have decided on very
generous compensation for the CEO, often amounting to a substantial share
of the company's profits. The golfing buddies have also decided that
the public shareholders should be diluted by stock options granted to
executives and that the price on those options should be reset
every time the company's stock takes a dive.
” source...
Loading...