Paul Tudor Jones has seen it coming for years: The growing wealth inequality, the conspicuous consumption of his fellow billionaires, the endless stock buybacks pushed by his compatriot hedge-fund managers are the little people fall further and further behind. It all adds up to people having second thoughts about capitalism, Alexandria Ocasio-Cortez, Green New Deals and—worst of all—higher taxes. And unlike the people currently running this country, PTJ doesn’t think that simply yelling, “SOCIALISM! SOCIALISM!” will stop the red tide.
We now have the highest wealth inequality in the history of this country. We’ve got literally half the country that can’t raise $1,000 for a family emergency. We have got -- 35% of the wealth used to be owned by the lowest 90% of the population -- the lowest -- bottom 90% of the population in 1985. Today the bottom 90% of the population owns 23% of the wealth. So they have lost a third. And that 12% has gone to the top 1%. So we’ve got a system that I think we all could agree on the wrong track…. We have got a mania going on in buybacks and a mania going on in terms of shareholder primacy. It wasn’t always that way…. Things have been different and can be different again. And if they’re not, I’m really nervous about what the ultimate social consequences are in this country.
How to avoid such a catastrophic eventuality for the people of Belle Haven and their ilk in gated communities and billionaire bunkers around the country? Why, it’s simple: Just invest with Bob Geldof, or in Paul Tudor Jones’ new ETF, and that should solve the problem nicely. Best of all: It isn’t even entirely philanthropic!
We have this big disconnect of what the American public thinks and what corporate boardrooms, the C-suite, are actually doing. The interesting thing is there’s a way to bridge that gap where everyone wins. So what JUST Capital does is we rank the Russell 1000 companies 1 to 1,000 every year according to those metrics…. I don’t know if I want to see a legislative outcome for this. I’d love to see this happen organically…. The reason that we started JUST is so that we wouldn’t get to this point, right? If I think about the taxes, it is the most inefficient way to allocate resources within an economy. So that’s why I think JUST Capital is so important. I’d like to find an organic solution and that means a complete cultural, social, intellectual shift of the way that we think about our companies and what their responsibilities are.
We created an ETF…. It outperforms stock prices better. It outperforms the Just index. It outperforms the Russell 1,000. On average those companies create jobs that are 27% faster rate. Has a 3% higher return on equity. Recycles waste nine times the average. I could go on and on.