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A modern twist on the phrase “Let them eat cake” reveals that shareholders are reaping the benefits at the expense of workers. A recent report from Oxfam shows that the majority of profits from over 200 U.S. corporations went to wealthy shareholders, with 90% of the $1.25 trillion in net profits going into their pockets. CEOs are also thriving, with their pay increasing by 31% since 2018.
The report highlights how company taxation has decreased due to corporate lobbying efforts, allowing shareholders and CEOs to amass record profits in the aftermath of the COVID-19 crisis.
The Rise of Tech Layoffs
Despite claims of economic strain leading to layoffs in various sectors, corporations are actually experiencing significant revenue and profit growth. Companies like Meta have announced massive stock buyback programs while laying off thousands of workers. In 2022, stock buybacks reached a record $681 billion, consolidating power at the top.
This trend of prioritizing shareholders and CEOs over workers has been decades in the making, with changes in corporate practices and tax policies favoring the wealthy. While there are some promising signs of change, such as the growing popularity of unionization, income inequality continues to widen.
The Root of Wealth Inequality
Certain industries, like retail, exemplify the stark disparities in pay and representation. Retail workers, often women and people of color, earn far less than their predominantly white male leaders. Despite pledges to address diversity, equity, and inclusion, many companies fall short in implementing concrete measures.
Ultimately, concentrating wealth in the hands of a few is detrimental to the economy as a whole. As companies prioritize profits over their workforce, the long-term consequences can impact even the wealthiest individuals.
For a deeper dive into wealth, income, and inequality, explore Fortune’s coverage and stay informed on the latest developments.
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