
William Lazonick
Economist
1
APPEARANCES
1
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Jun 30, 2026
Myths That Built Trickle-Down Economics: Shareholder Value (with William Lazonick and Lenore Palladino)
8:02
8:08
8:23
8:32
8:44

William LazonickGUEST
Uh, well, the, the companies, when they go public, they issue shares on the market.

William LazonickGUEST
Uh, typically, the reason they issue shares is, uh, to, so the people who have invested in the company can take their money out, and managers can run the company and hopefully grow the company through reinvesting, uh, the profits when they make the profits.

William LazonickGUEST
And, uh, uh, traditionally, uh, first, if you want people to hold shares, uh, you want to, uh, give them a yield.

William LazonickGUEST
Uh, they can either get that through dividends, uh, if you can afford to pay them, and, uh, or through selling the shares at a higher price at a later point in time.

William LazonickGUEST
And up until about the nineteen eighties, uh, uh, that was basically what it was all about, and they were reinvesting, uh, the rest of the money into the company, uh, for capital equipment and for people, and which includes, uh, g- giving employment security pay raises, uh, benefits.
6 MINS LATER