The Federal Reserve as we know it today is the product of more than a century of evolving economic theory and political and social compromise. The monetary, regulatory, and supervisory policy choices of the Fed shape macroeconomic and financial conditions in the U.S. and abroad and have long-term impacts on economic inequality. By reforming Federal
As presented at a congressional briefing hosted by the House Full Employment Caucus on December 1, 2015. Congressman Conyers and members of the Full Employment Caucus, thank you for the privilege of speaking to you today on the issue of the Federal Reserve accountability to the public—a topic of perennial importance that has become even more
Our Big Ideas Breakfast Series features leaders, scholars, and policy experts in fields ranging from economics to human and civil rights, presenting their views on current and emerging issues. Breakfasts are by invitation only. To learn more about attending a future breakfast, please contact Monica Gonzalez at firstname.lastname@example.org. Past Breakfasts The Politics of Reproductive Rights and Economic
Hedge funds have aggressively pursued U.S. public pension dollars, maintaining that they offer pension funds absolute return and volatility reduction in exchange for the high management and performance fees that they charge. And many public pension systems, with encouragement from their investment consultants, have made significant allocations to hedge funds, chasing the promise of superior
Today the Roosevelt Institute’s Financialization Project is releasing two new papers on short-termism:
Understanding Short-Termism: Questions and Consequences (pdf) by J.W. Mason.
Ending Short-Termism: An Investment Agenda for Growth (pdf) by Mike Konczal, J.W. Mason, and Amanda Page-Hoongrajok.
The first answers 12 common questions and complaints that are brought up when it comes to short-termism. It’s especially clear showing that investment in the most recent recovery is the weakest since the Great Depression, and that there’s no way to understand buybacks and dividends as representing funding for new businesses.
The second is our policy agenda, which goes beyond simply tackling short-termism by itself. Instead, it focuses on rebalancing power overall, limiting bad actors but also empowering good ones. This trend can only be combated by emboldening countervailing power in the marketplace while also emphasizing a new role for government.
I hope you check them out! Below is the Table of Content for policy agenda items and the questions about short-termism we answer in the two documents.
Corporate short-termism—also known as “quarterly capitalism”—has become a key issue in the 2016 election. It’s also one of the major economic trends that has been increasing inequality and weakening economic growth for the last 35 years. So what is it, how has it transformed American business, and what can we do about it? In our Agenda
Five years after the official end of the recession, economic activity in the U.S. remains below potential. One important reason is the slow growth in business investment, which remains weak, especially compared to previous recoveries. To an increasing number of observers, the weakness in investment appears related to the rise in what observers are calling
The goal of this paper is to address the most common objections to the idea that short-termism—the focus on short time horizons by both corporate managers and financial markets—is a serious problem for the U.S. economy. These objections fall into three broad categories: short-termism is not real (because of an apparent increase in business investment),
With so much attention on short-termism these days, I’m excited to announce the Roosevelt Institute’s Financialization Project is launching two papers this Friday, November 6th, in Washington DC.
The first paper is from J.W. Mason, and it is an answer to the three most common criticisms about this topic. Namely, it isn’t happening, it is happening but is great for growth, and that it may not be great but it’s appropriate and even necessary. J.W. push back on all three. (Sneak previews of his responses to the first and second issue are already floating out there.)
The second is from me, J.W. Mason and Amanda Page-Hongrajook, and it’s a ten point policy agenda to combat short-termism. The points are broad, focusing on everything from pension guarantees to regulation of stock exchanges, but story is simple: the agenda needs to focus on building countervailing power when it comes to the strength of short-term interest holders.
I’m looking forward to sharing these with you, and I hope they move the debate forward on this crucial but still understudied and underdeveloped area. To RSVP, please contact Eric Bernstein
On Friday, November 6, please join Roosevelt Institute Fellows Mike Konczal and J.W. Mason, with keynote speaker Senator Tammy Baldwin and moderator Jim Tankersley of The Washington Post, at the National Press Club as we release two papers on corporate short–termism. Opening remarks by Senator Baldwin will be followed by a panel with Cornell University’s Lynn Stout and the AFL-CIO’s Heather Slavkin Corzo.
An Agenda to End Short–Termism
Location: National Press Club
529 14th Street Northwest, Washington, D.C.
Breakfast will be available at 8:30 a.m.,
with the program to begin promptly at 8:50 a.m.
Rising shareholder payouts and declining investment have touched off widespread concern and debate about the corporate focus on short-term profits over long-term growth. In this set of papers, Mike Konczal proposes a broad policy agenda for curbing short–termism and J.W. Mason presents new research showing the depth of the problem and addressing common critiques.
To RSVP, please contact Eric Bernstein.
The Roosevelt Institute joined Fellows Mike Konczal and J.W. Mason, with keynote speaker Senator Tammy Baldwin and moderator Jim Tankersley of The Washington Post, at the National Press Club as we release two papers on corporate short–termism. Opening remarks were given by Senator Baldwin, followed by a panel with Cornell University’s Lynn Stout and the AFL-CIO’s Heather