Wall Street’s relentless drive for short-term profit is ruining corporate America and the consumer experience, according to John Bogle, founder of the Vanguard Group. The overseer of one of the world’s largest mutual funds appeared on Bill Moyers Journal to discuss a New York Times investigation that revealed substandard care at nursing homes owned by investment firms. According to Bogle, the trend is not contained, and has dire long-term consequences:
The financial sector of our economy is the largest profit-making sector in America. Our financial services companies make more money than our energy companies — no mean profitable business in this day and age. Plus, our healthcare companies. They make almost twice as much as our technology companies, twice as much as our manufacturing companies. We’ve become a financial economy which has overwhelmed the productive economy to the detriment of investors and the detriment ultimately of our society.