‘Quarterly capitalism’ is short-term, myopic, greedy and dysfunctional| Will Hutton
It has been obvious for years that British capitalism is profoundly dysfunctional. In 1970, 10 of every 100 of profit was distributed to shareholders: today, under intense pressure from short-term owners, companies pay out 70. Investment, innovation and productivity have slumped. Few new companies grow to any significant size before they are taken over.
Exports have stagnated. The current account deficit is at record proportions. The purpose of companies now is not to do great things, solve great problems or scale up great solutions -why capitalism is potentially the best economic system - it is to become payolas for their disengaged owners and pawns in the next big deal or takeover. Not only the British economy suffers - this process has become the major driver of rising inequality, low pay and insecurity in the workplace as management teams are forced to treat workers as costly commodities rather than allies in business building.
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