Wall Street Attacks Democracy How Financial Markets Increase Inequality Publication date : October 6, 2021
Georges Ugeux is a specialist in international finance, which he teaches at Columbia University School of Law. For seven years he was Vice President of the New York Stock Exchange, then founded Galileo Global Advisors, a company specializing in international consulting.
“November 24, 2020, in the midst of the global pandemic, the Dow Jones Industrial Average topped 30,000. Whereas the economy was facing a brutal recession, with unprecedented rates of unemployment and company bankruptcies, stock market indices rose to record highs and overlooked the accumulation of threats weighing on the economic, social, and financial stability of the planet.
This disconnect between the real economy and financial markets affects the very heart of our democracies. It is supported by several factors: the influence (and corruption) of political leaders by market participants; the short-term outlook of stock market performance which weakens infrastructures; the decision of central banks to sacrifice investors in favor of borrowers; the massive support given to large corporations and retailers to the detriment of small and mid-size companies and independents.
This year 2020 will have demonstrated that a new form of inclusive capitalism should take the place of “everything for the shareholder.” This revolution will be the only way to prevent democracy from going down the tubes.”