Jeremy Grantham - difference in pay

Grantham believes that this contract between major corporations and the American public – which he says was strong back in the 1960s – has now collapsed. He cites the disparity in pay between CEOs and the average employees at major corporations as one example of how things have changed. According to the Economic Policy Institute, the difference in pay between the CEOs of the 350 largest US companies and their employees was 312 times in 2017. By contrast, it was just 20 times in 1965.

‘Basically, the capitalist beast is out of control, and it doesn’t owe any responsibility to the society it lives in, the town, the state or the country even,’ Grantham says. ‘Given half the chance, it will just withdraw its business and go and try its luck in Malaysia. They don’t care about the workers, which is even more important.’