Escaping from the Inescapable Casino of “Free” Market Capitalism

5fish

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what do you think i should learn?
It too much power in to few hands and vote fixing is taking place...


Which means I own corporate America because my 401-k account is invested in two of the big three.
You may own a piece of them but they have incredible voting power at the shareholder meeting... They could control every companies boards...

I think missed this part of the article... They coordinate their votes... its called vote fixing...


With corporate ownership comes shareholder power. BlackRock recently argued that legally it was not the “owner” of the shares it holds but rather acts as a kind of custodian for their investors.

That’s a technicality for lawyers to sort. What is undeniable is that the Big Three do exert the voting rights attached to these shares. Therefore, they have to be perceived as de facto owners by corporate executives.

These companies have, in fact, publicly declared that they seek to exert influence. William McNabb, chairman and CEO of Vanguard, said in 2015 that, “In the past, some have mistakenly assumed that our predominantly passive management style suggests a passive attitude with respect to corporate governance. Nothing could be further from the truth.

When we analysed the voting behaviour of the Big Three, we found that they coordinate it through centralised corporate governance departments. This requires significant efforts because technically the shares are held by many different individual funds.

Hence, just three companies wield an enormous potential power over corporate America. Interestingly, though, we found that the Big Three vote for management in about 90% of all votes at annual general meetings, while mostly voting against proposals sponsored by shareholders (such as calls for independent board chairmen).
 

5fish

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This article even points out market failing @Jim Klag , in two sectors of our economy is in an oligarchy state...


Research is still nascent, but some economists are already arguing that this concentration of shareholder power could have negative effects on competition.

Over the past decade, numerous US industries have become dominated by only a handful of companies, from aviation to banking. The Big Three – seen together – are virtually always the largest shareholder in the few competitors that remain in these sectors.

This is the case for American Airlines, Delta, and United Continental, as it is for the banks JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup. All of these corporations are part of the S&P 500, the index in which most people invest.

Their CEOs are likely well aware that the Big Three are their firm’s dominant shareholder and would take that into account when making decisions. So, arguably, airlines have less incentive to lower prices because doing so would reduce overall returns for the Big Three, their common owner.

In this way, the Big Three may be exerting a kind of emergent “structural power” over much of corporate America.

Whether or not they sought to, the Big Three have accumulated extraordinary shareholder power, and they continue to do so. Index funds are a business of scale, which means that at this point competitors will find it very difficult to gain market shares.
 

Jim Klag

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You may own a piece of them but they have incredible voting power at the shareholder meeting... They could control every companies boards
Jeez. Who cares? Have you any evidence of shenanigans in any company whose stock is owned by the big three? We still have a Securities and Exchange commission and a Commerce Department and laws governing the running of companies. Take a Prozac and chill.
 

5fish

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Here a video for those who chose not to read the article...

 

5fish

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America is a Oligarchy nation state... The few run the masses...


According to a new study from Princeton University, American democracy no longer exists. Using data from over 1,800 policy initiatives from 1981 to 2002, researchers Martin Gilens and Benjamin Page concluded that rich, well-connected individuals on the political scene now steer the direction of the country, regardless of – or even against – the will of the majority of voters. America’s political system has transformed from a democracy into an oligarchy, where power is wielded by wealthy elites.
 

Jim Klag

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America is a Oligarchy nation state... The few run the masses...


According to a new study from Princeton University, American democracy no longer exists. Using data from over 1,800 policy initiatives from 1981 to 2002, researchers Martin Gilens and Benjamin Page concluded that rich, well-connected individuals on the political scene now steer the direction of the country, regardless of – or even against – the will of the majority of voters. America’s political system has transformed from a democracy into an oligarchy, where power is wielded by wealthy elites.
Washington, Jefferson, Madison, et. al. were also the elites of their day. Andy Jackson and Abe Lincoln were anomalies. Most of our presidents have been from the upper crust or pals with the upper crust. Same with the Senate. The House is a littld more egalitarian but it is not antwhere near a mirror image of our society. So what's new. Stsrting with Alexander Hamilton, John Hancock, Robert Morris we were led by the wealthy.
 

rittmeister

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Washington, Jefferson, Madison, et. al. were also the elites of their day. Andy Jackson and Abe Lincoln were anomalies. Most of our presidents have been from the upper crust or pals with the upper crust. Same with the Senate. The House is a littld more egalitarian but it is not antwhere near a mirror image of our society. So what's new. Stsrting with Alexander Hamilton, John Hancock, Robert Morris we were led by the wealthy.
your constitution (especially the ellectoral college) is set up to have a ruling class of rich folks
 

5fish

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The right graph of the wealthiest over time... markets of wealth creation are broken... click and learn...


Here is another comparing thier wealth to GDP of nations...

 
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