Summary of More Builders and Fewer Traders

A Growth Strategy for the American Economy

Brookings Institution,

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More Builders and Fewer Traders  summary
America’s “corporate short-termism” has potentially disastrous consequences.


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The short-term mentality that drives American businesses and investors has negative long-term implications for the US economy. CEOs, focused on meeting this-quarter’s goals, engage in shareholder friendly activities such as buying back shares and boosting dividends while neglecting long-term value creation and growth. This noteworthy study from governance experts William A. Galston and Elaine C. Kamarck puts a magnifying glass to the potentially disastrous consequences of America’s “corporate short-termism.” getAbstract recommends this eye-opening report to corporate decision makers, board directors and policy makers.

In this summary, you will learn

  • How short-term incentives drive corporate behavior
  • What negative impacts that mind-set can have
  • How changes in practices and regulations could encourage long-term value creation and help the economy


America’s economy is far from vibrant: Annual growth has not reached 3% since 2005, and those at the higher end of the income ladder are reaping most of the rewards. For everyone else, stagnant or falling wages, increasing income inequality, and a contracting middle class are the new reality. Experts...
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About the Authors

William A. Galston and Elaine C. Kamarck work on the Brookings Institution’s Governance Studies Program.

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