Image: Peter Nicholls
However, the statement released this week goes
further than stances the group has taken in the
past, seemingly acknowledging the growing
momentum to find a solution to financial
inequality in the U.S. as it worsens.
Inequality has become a national narrative in
the lead-up to the 2020 presidential election.
Democratic presidential candidates have
pushed for a seat on corporate boards chosen
by employees and tying stock buybacks,
which benefits investors, to employee pay at
that company.
The push to rethink the role of corporations
in society has not come exclusively from the
political arena. This time, there is pressure from
Wall Street power brokers as well.
In April, the renowned hedge fund manager
Ray Dalio stunned Wall Street with an extended
essay in which he wrote, “everything must
evolve or die. This is now true for capitalism.”
“It’s producing self-reinforcing spirals up for
the haves and down for the have-nots,” Dalio
wrote. “This is creating widening income/
wealth/opportunity gaps that pose existential
threats to the United States because these
gaps are bringing about damaging domestic
and international conflicts and weakening
America’s condition.”
How much sway a mission statement from
the Business Roundtable will have cannot
be measured, but economic pressure on
corporations, workers and consumers may grow
more intense in the near future.
A survey released by the National Association
for Business Economics indicated that 34% of
economists believe a slowing economy will tip
the U.S. into recession in 2021.
That’s up from 25% in a survey taken in February.