Helping the Casualties of Creative Destruction: Corporate Takeovers and the Politics of Worker Dislocation

Journal of Corporation Law, Vol. 16, 1991

50 Pages Posted: 22 Oct 2010  

Alan E. Garfield

Widener University - Delaware Law School

Date Written: 1991

Abstract

This Article’s thesis is that society’s responses to takeover dislocation have been misguided. For a variety of reasons, society has sought to ease takeover dislocation by discouraging takeovers, a process which has only served to protect corporate executives (by entrenching them in power) and not the lower-level employees who need protection most. The Article contends that takeover-related dislocation is no different from other forms of dislocation. It suggests that if policymakers are truly concerned about such dislocation, they should focus less on regulating takeovers and more on addressing issues of worker dislocation directly, such as by giving workers more power to influence the allocation of corporate resources or by affording workers more benefits and assistance during periods of dislocation.

Keywords: takeovers, worker dislocation, unemployment, corporation law

JEL Classification: K22

Suggested Citation

Garfield, Alan E., Helping the Casualties of Creative Destruction: Corporate Takeovers and the Politics of Worker Dislocation (1991). Journal of Corporation Law, Vol. 16, 1991. Available at SSRN: https://ssrn.com/abstract=1695199

Alan E. Garfield (Contact Author)

Widener University - Delaware Law School ( email )

4601 Concord Pike
Wilmington, DE 19803-0406
United States

HOME PAGE: http://law.widener.edu

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