Airlines, Stock Splits and Voting - Bloomberg:
But I think the "index funds ruin capitalism" story�is best read as just one strand of a larger "financial capitalism ruins capitalism" story, and while the index funds story is still pretty niche, the financial capitalism story has become very popular. In this story,�managers and investors have stopped thinking of companies as�companies, as human networks of employees and customers and investors, and now think of them instead as�numbers, as sets of financial factors to be optimized. There are many explanations�for this: Developments in graduate business education, or the rise of corporate activism, or the cultural role of Wall Street. But�the basic story is that companies�used to balance the interests of workers, customers and investors; now they have adopted a fully investor-centric model in which profits are the only goal and customer service and workers' rights are sacrificed. Sheelah Kolhatkar writes that "the investors-above-all doctrine seems to have triumphed over the more inclusive approach."