The Thumb on the Wage Scales

“Walmart announced last month that it was raising pay for some of its lowest-wage workers. Investors responded by pummeling its shares, sending them down by more than 6 percent on the day.”

“What is Work Worth”, New York Times Dealbook, Kevin Delaney, March 20, 2021.

This quote came from a business newsletter that I get every morning. This one caught my eye because it provided a detail that encapsulate my thoughts about shareholders: they are a huge part of our problem with inequality because they don’t care about the workers.

Here’s another quote:

“Chief executives have in recent years publicly pronounced their commitment to “stakeholder capitalism” and “doing well by doing good.” But when it comes to paying workers a wage that can support their families, investors send executives a clear message: increase pay at your peril.”

“What is Work Worth”, New York Times Dealbook, Kevin Delaney, March 20, 2021.

Bottom line: we can’t deal with the inequities until we get a handle on shareholder behavior. Who are these shareholders? I don’t have specifics but I do suspect private equity traders, hedge fund managers, all of those Wall Street titans, and, of course, the other uber wealthy. I have a chart that says the 1% owns 53% of stocks, the other 9% owns 40%, and then the rest of us (90%) owns a minuscule 7%.

If you subscribe to New York Times, you might be able to get at the article by searching on “What is Work Worth” or on the author Kevin Delaney.