Odd Lots An Anthropologist Explains How Wall Street Culture Reshaped The Entire Economy
Nov 4, 2019
Karen Ho, a professor of anthropology at the University of Minnesota, dives deep into Wall Street culture and its impact on the economy. She discusses how the notion of maximizing shareholder returns emerged, often at the expense of workers. Ho reveals the irony of high-paid Wall Street employees facing job insecurity despite their salaries. Through her unique fieldwork within a bank, she critiques the shareholder-first mindset and examines the cultural dynamics that shape corporate responsibility and governance today.
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Layoffs and Stock Price
- In 1995, AT&T announced massive layoffs, and its stock price surged.
- This event sparked Karen Ho's research into Wall Street culture.
Short-Term vs. Long-Term Value
- Maximizing shareholder value as a primary corporate strategy can harm long-term value.
- This short-term focus, like sprints in a marathon, hinders sustained growth.
Wall Street Culture
- Wall Street's "culture of smartness" and overwork contributes to short-term thinking.
- High compensation and revolving door employment create a detachment from long-term consequences.
