"Shareholder Value" in Ruining Country.

An interesting op-ed piece in the Wall Street Journal by William Galston, claims that the demand for short term profit by Wall Street investors is ruining American companies, and ruining the country.  When investors continually demand maximum short term profits, it prevents management from making the kind of low profit but necessary long-term investments that keep a company competitive in the long term.  Investment in things like expensive new plant and equipment, which might take twenty years to pay for itself, and training and re-training of the work force, can lower short term profits, but are essential for long term competitiveness and even for survival. Ploughing money back into the host community by helping with school programs and other infrastructure can also help the long term survival of a company.   When demand for continual short term profit prevents a company from making this kind of investment, it not only ruins the company, it ruins the country.