Research & Insights

Delilah Rothenberg Speaks with Jahed Momand of the Ownership Economy

Predistribution is an approach to avoiding vast economic inequality from production cycles by ensuring that workers and communities who take risk and create value alongside investors and lenders are fairly compensated for these contributions. By contrast, redistribution happens after the fact. Although one would think that increasing returns to capital versus labor might be good for institutional investors, this trend is actually detrimental to the economy in the long-term, since markets become imbalanced, aggregate demand is threatened, reliance on credit increases, and mistrust in institutions erodes stability. Since large diversified investors like pension funds, insurance companies, and sovereign wealth funds have portfolios that are highly diversified and essentially a slice of the economy, their financial returns are exposed to these long-term risks from inequality. In this podcast, Delilah speaks with Jahed Momand of the Ownership Economy about these trends, how rapid advancements in AI and automation are likely to exacerbate risks and inequality, and how employee and community ownership models, as well as increased participation by workers, communities, and consumers in corporate governance, can help avoid such risks.