Today, we are looking at stagnant wage growth and corporate under investment. Basically, the rich (companies and people) are sitting on huge piles of cash. Here is an old but important story.
Anyone concerned about growing inequality in the Untied States knows that wages have not grown since the time of Ronald Reagan. That's forty years ago! During that forty years, corporations and investors have "harvested" profit while reducing investments and wages.
Here is an open letter from Larry Fink, Chairman and Chief Executive of BlackRock, the nations largest asset management company encouraging companies to invest more in improving company operations rather than stock buybacks and dividends. The letter is from March 21, 2014. He wants to steer corporations toward investments that will lead to long-term, sustainable growth.
The areas he suggest for investment are:
"innovation and product enhancements, capital and plant equipment, employee development, and internal controls and technology"
You can read the letter Larry Fink wrote on Long-Term Growth Strategies in the Wall Street Journal.