Assistant Speaker Lujan and Senator Warren Announce Plan to Reintroduce the Accountable Capitalism Act

Statement

Today, U.S. House Assistant Speaker Ben Ray Luján (D-N.M.) and United States Senator Elizabeth Warren (D-Mass.) announced they will reintroduce the Accountable Capitalism Act to help eliminate skewed market incentives and return to the era when the success of American corporations translated into success for American workers. The legislation aims to reverse the harmful trends over the last 30 years that have led to record corporate profits, productivity, and CEO pay, but stagnant wages for workers.

For most of our country's history, American corporations balanced their responsibilities to all of their stakeholders -- employees, shareholders, communities -- in corporate decisions. It worked: profits went up, productivity went up, wages went up, and America built a thriving middle class.

But in the 1980s a new idea quickly took hold: American corporations should focus only on maximizing returns to their shareholders. That had a seismic impact on the American economy. Over the last decade, big American companies dedicated 93% of earnings to shareholders, redirecting trillions of dollars that could have gone to workers or long-term investments. The result: booming corporate profits and rising worker productivity have not led to rising wages.

Additionally, because the wealthiest 10% of American households own 84% of all American-held market shares, while more than 50% of American households own no stock at all, this dedication to "maximizing shareholder value" means that the multi-trillion dollar American corporate system is focused explicitly on making better off Americans even richer. In fact, in the year following passage of the Republican tax bill, large American companies announced nearly $1 trillion in stock buybacks while making no major impact on hiring and investment.

"Our economy is not working for the American worker. The Republicans' disastrous policies and Trump Administration's agenda has shortchanged the average worker while lavishing benefits on corporate interests. That must change," said Assistant Speaker Luján. "I'm proud to work with Senator Elizabeth Warren to introduce this legislation that uplifts the voices of America's middle-class and gives workers a fighting shot at achieving the American dream. This landmark legislation will reduce income inequality, strengthen companies, and help ensure a fair and just economy for our families."

"Year after year, corporate profits soar thanks to American workers. The average wages of these workers remain flat while corporations shovel out cash to their executives and shareholders and suck trillions of dollars and necessary long-term investments from workers," said Senator Warren. "That's why I keep fighting with colleagues like Representative Luján to pass this bill and get workers what they deserve."

Source