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Summary Of Profits Without Prosperity By William Lazonick

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Summary Of Profits Without Prosperity By William Lazonick
Profits without Prosperity
In the article “Profits without Prosperity” published by the Harvard Business Review, William Lazonick describes the alarming effects of huge stock buybacks by the top management. Among these problems includes loss of shareholder value, clear disinvestment, crippled ability to modernize, obliteration of jobs, exploitation of employees, payout gains for activist insiders, speedily growing disparity, persistent economic stagnation as well as runaway executive compensation. In the article, William refers to these buybacks as a social, economic and moral disaster as they entail effective stock-price manipulation.
Lazonick continues to say that instead of generating value for their companies, shareholders, and society,
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