“Case-in-point why workers can’t share in financial growth: providing a dividend means less cash is available for expensive R&D and supply chain upgrades.” Anthony Ramos
In place of retained earnings and debt financing, the government should require corporations to issue and sell full-voting, full-dividend payout stock to more people to underwrite new productive capital formation, with the purpose of providing opportunity for new owners, both employees of corporations and non-employees, to participate in a growing economy. Of course, there needs to be a financial mechanism put in place that will guarantee loan risks provided by banks and lending institutions. Otherwise, the system will continue to limit access to capital acquisition to those who already own capital—the rich––using savings-based investment. This is because “poor” people have no security or collateral, or sufficient income to pledge against the loan as security. Thus, criteria must be created to qualify the corporations subject to this policy and those corporations that qualify overseen so as to insure that their executives exercise prudent fiduciary responsibility to generate loan payback. Once the guaranteed loans are paid back, the new capital formation will continue to produce income for existing and future owners.
http://www.businessinsider.com/apple-investors-really-need-to-stop-whining-about-dividends-2012-3
