QUOTE : Some argue shareholder capitalism has proven to be more “efficient” than stakeholder capitalism. It has moved economic resources to where they’re most productive, and thereby enabled the economy to grow faster. By this view, stakeholder capitalism locked up resources in unproductive ways, CEOs were too complacent, corporations were too fat—employing workers they didn’t need, and paying them too much—and they were too tied to their communities. It is a tempting argument, but in hindsight a fallacious one. Any change that allows some people to become better off without causing others to be worse off is technically a more “efficient” use of resources. But when all or most of these efficiency gains go to a few people at the top—as has been the case since the 1980s—the common good is not necessarily improved. Just look at the flat or declining wages of most Americans, their growing economic insecurity, and the abandoned communities now littering the nation. Then look at the record corporate profits, soaring CEO pay, and jaw-dropping compensation on Wall Street. All Americans are stakeholders in the American economy, and most stakeholders have not done well.