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Full-Text Articles in Law
Leo Strine's Third Way: Responding To Agency Capitalism, Ronald J. Gilson
Leo Strine's Third Way: Responding To Agency Capitalism, Ronald J. Gilson
Faculty Scholarship
Ten years ago, Tony Blair's "New Labour" government sought an agenda that replaced ideology with a pragmatic focus on both the creation of wealth and its distribution. Not surprisingly, part of this effort involved proposals to bridge the gap between capital and labor through refraining corporate governance. A "third way" as it was then styled, would walk a fine line between privileging markets and allocational efficiency at the cost of social justice on the one hand, and accepting less for everyone as long as the distribution was fair on the other. Motivated by changes in how we save for retirement …
Employees, Pensions, And The New Economic Order, Jeffrey N. Gordon
Employees, Pensions, And The New Economic Order, Jeffrey N. Gordon
Faculty Scholarship
The "New Economic Order" in the United States is a regime of trade liberalization, a robust market in corporate control, and labor market flexibility. Among the consequences over the 1980-1995 period is a divergence between the growth rate of corporate profits and stocks prices, which have increased by approximately 250% in real terms, and wages, which have barely increased at all, except for the top quintile. Contrary to popular belief employees have not significantly participated through their pension funds in this stock market appreciation. In the historically dominant defined benefit pension plan, the sponsoringfirm, not the employee, is the residual …