Socialist Senator Elizabeth Warren (D Ma.), having recently declared herself a Capitalist, must now devise a way to weave her ‘Capitalism’ into the prevailing, dominating Progressive love affair with Socialism.
How do you pull that off Senator?
You file legislation called “The Accountable Capitalism Act”. Your justification is the trend over time for companies, under pressure from stockholders and investors, to feed the lion’s share of profits into returns for said investors and stockholders. Senator Warren cites the statistic that claims prior to 2007 Companies committed about 50% of their profits to stockholder returns and that since then it’s been 93%.
The Senator, based on having been exposed to her keen insight on all things financial, does not address the various accounting methods that could both reserve funds for things such as capital spending and thus reduce profits on paper. So we begin with a fairly thin tread.
This bill has nothing to do with accountability; it’s about Socialistic redistribution of resources; in this case to employees and “communities” whatever that means. This bill is about insuring wage growth. It’s also about insuring the decline of corporate America as her bill would require companies with over a billion dollars in revenue to obtain a Federal Charter and would require that 40% of company directors be elected by the employees; who are employees for a reason.
The Corporate Charter would require directors to consider the interests of all major stakeholders, not shareholders, stakeholders. We’re not sure what the standards for being a ‘stakeholder’ are but it’s not hard to guess: Unions, community organizations, social justice organizations and the Democratic Party in all of its iterations. As unions fail at an increasing rate this would be a rank substitute for their failures.
We have to give the Senator some credit for taking redistribution of resources to a new level of creativity but regardless of the nature of the creativity, its actual nature is clear.