The Raging 2020s

As we embark on this journey through the turbulent landscape of the 2020s, it is essential to understand the forces that have shaped our modern economy and society. One of the most profound shifts in recent decades has been the rise of shareholder capitalism—a doctrine that transformed corporations into entities primarily focused on maximizing profits for their shareholders. This idea, crystallized by an influential economist in the early 1960s, became the guiding principle for businesses worldwide, especially from the 1980s onward.

This shift was not merely theoretical; it reshaped the very fabric of our economies and communities. The deregulation wave that swept through the United States and Europe during this period lowered barriers for mergers and acquisitions, leading to a rapid consolidation of industries. Hostile takeovers became commonplace, with corporate raiders targeting underperforming companies and restructuring them ruthlessly to boost short-term returns. One of the most emblematic tools of this era was the stock buyback—companies repurchasing their own shares to artificially inflate stock prices, rewarding executives and shareholders but often at the expense of investment in workers and innovation.

Consider the insulin market, where a drug that once cost a mere three Canadian dollars to patent has become a life-or-death expense for many, with prices soaring into the hundreds of dollars monthly. This is a stark illustration of how shareholder primacy can distort priorities, placing profits well above human welfare.

The consequences ripple through communities too. Family farms, once the backbone of rural America, have been swallowed by corporate agriculture. Jobs have fled small towns as headquarters relocate to tax-friendly cities, leaving behind economic deserts. The average American’s wage has stagnated even as corporate profits and executive compensation have soared. This concentration of wealth and power in a few hands is unprecedented since the Great Depression, with the top 50 companies now generating a third of the U.S. GDP.

Yet, this story is not just about loss—it is about a call to awareness and change. Understanding the origins and impacts of shareholder capitalism sets the stage for exploring alternatives and solutions. As we move forward, we will see how the social contract that once balanced the interests of business, government, and citizens has frayed, and how new models of responsibility and cooperation are emerging to heal these divides.

Let us now turn our attention from the private sector’s rise to the parallel decline in government power and effectiveness, a story that intertwines deeply with the challenges we face today.