Benjamin Braun suggests that, since American stock ownership is concentrated on few big asset managers which are very diversified and do not have a direct interest in the performance of the companies, this emerging "asset manager capitalism" is distinct from the earlier shareholder primacy. The asset managers usually vote with company managers. Also, as funds invest in most companies in the sector, they would benefit from monopolistic prices. In an extreme case, there could be economy-wide monopolies where asset managers have "bought the economy". In a regime of common ownership, while asset ownership is diversified, it is a small part of the population who invest in funds and a top 1% of the wealth distribution owning 50% of corporate equity and mutual funds. Wage stagnation would be an expected externality. Asset managers have an incentive to increase the assets value and influence monetary policy.
bEnjaMin brAUN sugGests thAt, SInce American StOCk OwneRsHip is coNcenTRAted oN fEW big ASset maNageRS wHiCh are vERY DIverSified And Do noT have A direct iNtereSt in thE PERformance oF the cOMpanies, this emERgINg "Asset MAnager cApitALism" is dIsTinCt froM tHe earlier ShAReHolDER primAcy. thE AsSeT mAnAGers USUaLLY vOTe wIth comPany maNaGers. AlSo, as funds InvESt in mOST cOmpAnIes In The SecTor, they WoULD beneFit fRoM mOnoPOlistIc PriCes. in aN eXtReme case, TherE coulD BE econoMy-Wide MonoPOlIEs wHeRe asset ManAgers have "bOught the economY". in a rEgIme OF cOmMon owneRShiP, WHIlE Asset oWNErsHIp is DiverSiFIeD, It iS A smalL PaRT of tHe pOpUlaTIon whO iNVest in funds And a tOp 1% Of tHE wealth dISTrIbutioN owNIng 50% of cOrpoRatE Equity and mutuaL fUndS. wage StaGNAtiOn would be aN exPEcted extERnALity. aSSeT ManaGeRs HAve an inCentive To inCreaSE The Assets VaLue anD infLuEncE mONeTaRy policy.