Category: Research

Coverage of the Financialization Project and “Disgorge the Cash”

The American economy has changed dramatically over the last 35 years. “Why Finance Is Still a Problem,” TIME“What William Gibson’s “New Rose Hotel” Got Wrong About the Future,” The Stranger“Why companies are rewarding shareholders instead of investing in the real economy,” Washington Post“Corporate Borrowing Now Flows To Shareholders, Not Productive Investment: Study,” IB Times“Shareholders’ big […]

Disgorge the Cash

J.W. MasonRoosevelt InstituteJohn Jay College In this white paper, Roosevelt Institute Fellow J.W. Mason provides evidence that the relationship between corporate cash flow and borrowing to productive corporate investment has disappeared in the last 30 years and has been replaced with corporate funds and shareholder payouts. Whereas firms once borrowed to invest and improve their long-term performance, they now […]