I am conflicted here. On the one hand, businesses have the responsibility to do what is appropriate to manage their income and expenses. On the other hand, businesses have a responsibility to their employees to pay them appropriately.
Looking at the last 40 years business does not have a very good track record. The top 1% socioeconomic class in America income has increased from 11% in 1969 to 21% in 2017. For people in poverty the number has stayed the same (10%) from 1969 to 2017.
Today’s executives will say their responsibility is to their shareholders (and themselves). Buying back stock raises the stock price, increasing the shareholder value.
Back in the day, when most companies were owned by families in the towns and cities in America. The local owners had more connection with their employees and the community; paying their employees more of their value, as opposed to the minimum they require.
There is my conflict. Thoughts?