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Macroscope | Post-pandemic US can revive prosperity through commitment to innovation and reform
- Increasingly dominant companies, especially tech firms, and outdated corporate governance practices are undermining the foundations of prosperity
- Fortunately, there are simple steps that regulators and educators can take to put the economy and society on a sounder footing
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As public discontent forces a political reckoning in many developed economies, the social contract binding together markets, states and citizens is being reimagined. Today’s anger and alienation present an opportunity to address cracks in our societies’ economic foundations, starting in the United States.
Commercial activity is being rapidly digitised at scale, suggesting that the largest and most successful companies in the technology sector – from Amazon to Zoom – will continue to be dominant market forces for the foreseeable future.
Yet while investors in these fast-growing enterprises have enjoyed significant financial gains, most others have not. The leading tech companies have fallen short in creating value for many of their stakeholders as well as contributing to US economic growth overall.
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Now that people have adapted to the effects of the Covid-19 pandemic, many business leaders have shifted their focus back to quarterly profits and share prices. Just this month, Microsoft announced a US$60 billion share buy-back plan and dividend increase.
02:44
US, Britain and EU accuse China of sponsoring massive Microsoft email server hack
US, Britain and EU accuse China of sponsoring massive Microsoft email server hack
Meanwhile, there has been little talk of what management teams could do to create long-term value for shareholders and stakeholders alike.
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