Many public policymakers and economists believe that American workers’ sharply declining share of corporate profits over the past few decades has been a major cause of increasing income inequality in the United States. To some, the explanation for this profound change in the division of the corporate pie is simple. Since the 1980s, the power of stockholders to demand corporate policies favoring their interests has drastically increased, while the leverage of working people in the corporate power structure has drastically decreased. As a result, stockholders have grabbed much more of the pie, and left workers with crumbs.
Leading public officials … Read more