Goldman Sachs CEO: “Tensions Between Capital And Labor” Are “Fueling Anxiety” [View all]
Source: BuzzFeed
Speaking on the 63rd floor of One World Trade Center to an audience of bankers, reporters and executives, the CEO of Goldman Sachs fretted over the fate of labor in the modern economy.
When asked about how corporations allocate their capital — increasingly buying back stock from their shareholders — Lloyd Blankfein said “the capital we’re spending is augmenting capital” that could be invested elsewhere, such as in hiring or expansion.
Andrew Ross Sorkin, who was interviewing him for the New York Times’s DealBook Conference, then asked about Uber, which recently raised over $1 billion at a valuation of over $40 billion — with Goldman also raising money for Uber from its wealth management clients. Blankfein said the “sharing economy” can create more efficiency, which “can sometimes be the enemy of maximizing the labor force,” and that the gains from that efficiency go to investors like venture capital firms that have large stakes in Uber.
“The efficiencies are coming at the expense of labor,” Blankfein said. “That’s creating all sorts of problems for the country.”
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Read more: http://www.buzzfeed.com/matthewzeitlin/goldman-sachs-labor
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