Corporate profits and executive pay are sky high today, while wages for most American workers have remained low and stagnant over the past several decades. Today’s high-profit, low-wage economy is, in part, a result of rules and policies that shape corporate decision-making. These rules have allowed CEOs, shareholders, and executives to move more and more

Late last month, the Business Roundtable (BRT)—a collection of 181 of the country’s largest corporations—announced that it was breaking from over 20 years of precedent. Instead of prioritizing shareholder value over everything else, the BRT declared that it would elevate the interests of all other stakeholders—including customers, communities, and suppliers—alongside it. Most notably, the very

On Thursday, the Internal Revenue Service (IRS) released new estimates of the US “tax gap,” which measures the difference between the taxes people, corporations, and other entities legally owe and what is actually collected. The tax gap totals nearly $8 trillion over the past decade, according to the chief mathematician (#MathIsReal) for the Senate Budget

In a new working paper, Roosevelt Senior Economist and Fellow Lenore Palladino argues that the 21st century American economy requires a new, more accurate, and more effective model for corporate governance—one that can advance worker power and employee representation within American corporations and curb inequality. As it stands, outsized shareholder power is contributing to rising economic

The rules of trade and of the global economy are failing too many. Due to false assumptions about the role of markets and the role of government in our economy, policymakers have narrowed their idea of international trade over the last 40 years, harming workers and hindering economic potential. By expanding our understanding of markets

FOR IMMEDIATE RELEASE: July 11, 2019 CONTACT: Ariela Weinberger, aweinberger@rooseveltinstitute.org Rising Number of Hospital Mergers and Closures in Rural America Hurting Women’s Health, Economic Well-Being Roosevelt Institute documents adverse effects of market power crisis An issue brief released today by the Roosevelt Institute finds that corporate consolidation within America’s rural hospital sector is harming both

Structural problems in the health care and hospital industries are specifically hurting women in rural America, both as patients and as workers. In a new Roosevelt issue brief, Andrea Flynn, Rakeen Mabud, and Emma Chessen explore some of the industry-wide shifts that have occurred in rural areas over the last several decades. They then describe the

The mainstream economic theory that guides corporations in the US only works if markets are perfectly efficient. This flawed theory has led to corporate decision-making that centers shareholders above all else, including other stakeholders (e.g., workers), long-term business growth, and economic health. This shareholder-first ideology is referred to as “shareholder primacy,” which does not reflect

In a working paper, Roosevelt Senior Economist and Policy Counsel Lenore Palladino investigates whether stock buybacks occur more frequently, independent of other factors, when corporate insiders are selling their own personal shareholdings. In her empirical analysis of the relationship between insider sales and stock buybacks, Palladino finds that a 10 percent increase in insider sales

FOR IMMEDIATE RELEASE: June 19, 2019 CONTACT: Ariela Weinberger, aweinberger@rooseveltinstitute.org The High Cost of Shareholder Power in Big Pharma New Roosevelt brief illustrates the magnitude of Big Pharma spending on shareholders NEW YORK, NY – At a time when Americans pay record prices for medications, pharmaceutical companies generate record profits devoted largely to rewarding shareholders