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Manufacturing is still critical to the economy United States. Clyde Prestowitz, says it's time to start realizing the positive spillovers that manufacturing creates... Read more  

Events & Activities

Stephen Olson at Chinese Development Institute Conference

 

 Clyde Prestowitz giving presentation to CDI...

 

Steve Olson teaching trade negotiations at the Mekong Institute...

 

Stephen Olson to speak at upcoming workshop organized by the International Institute for Trade and Development on 

"Economics of GMS Agricultural trade in goods and services towards the world market"

Chiangmai, Thailand Sep 8-12.

(4/10/11) Prestowitz letter to editor of New York Times

The New York Times

April 10, 2011 Sunday

How General Electric Dealt With the Tax Man

To the Editor:

In ''Who Could Blame G.E.?'' (column, April 5), Joe Nocera says America's corporations have a fiduciary duty to maximize profit for their shareholders. Who says so? This has become the modern mantra of business-school professors and chief executives. But the corporation is not chartered by the shareholders. It is chartered by the state. The state charters corporations because it believes they may provide benefits to the society and not just to the shareholders.

It is interesting to note that as recently as the 1980s, the Business Roundtable's chief executive mission statement asserted that the chief executive had a duty to care for customers, employees, communities and the nation (the stakeholders, in other words) as well as the shareholders.

This mission statement was changed in the mid-1990s to conform to the present shareholder value fetish. General Electric and other corporations that practice this fetish do so at their own and the country's long-term peril.

CLYDE PRESTOWITZ Potomac, Md., April 5, 2011

The writer, president of the Economic Strategy Institute, a nonpartisan public policy think tank, was counselor to the secretary of commerce in the Reagan administration.

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Latest Publications


The Betrayal of American Prosperity.


The Trans-Paific Partnership and Japan.


Making the Mexian Miracle.


Industrial Policy and Rebalancing in the US and China.


The Evolving Role of China in International Institutions.

 

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