Capitalism is failing America, says a conservative Republican

His exhaustively researched report released last week, “American Investment in the 21st Century,” puts the blame squarely on institutional changes in corporate management and capital markets that demand a single-minded emphasis on short-term financial results over sustainable growth. “The American tradition is a story of the prosperity that can be created when the private business sector is the allocator of capital investment, training society’s wealth and resources into the growth of new products and technologies.” The emphasis on short-term payouts to shareholders “diverts resources away from investments whose payoff lies beyond the immediate horizon,” and “creates a systematic bias against innovation,” in the words of Clayton M. Christensen, Stephen P. Kaufman, and Willy C. Shih in their Harvard Business Review article, “Innovation Killers: How Financial Tools Destroy Your Capacity to Do New Things.”

Source: www.marketwatch.com