Dems' antidote to the evils of activist investing

摘要

Washington has someone new to blame for America's economic ills: Activist investors. The "new" crisis for Democratic legislators is "quarterly capitalism," an emphasis by investors - in this case hedge funds - on the next earnings report. According to the argument, the push for higher short-term earnings places a greater emphasis on stock buybacks, dividend hikes and compensation cuts over capital investment, research, long-term growth and hiring workers. Recently, Sen. Tammy Baldwin (D-WI) and Sen. Jeff Merkley (D-OR) introduced a bill they claim will boost investment in research and development, American wages and domestic facilities while deterring the "evils" of activist investing. The ever-outspoken Sen. Elizabeth Warren (D-MA) and presidential candidate Sen. Bernie Sanders (D-VT) naturally piled on as co-sponsors.