William Lazonick

Professor of economics at the University of Massachusetts Lowell and the President of the Academic-Industry Research Network

Professor of economics at the University of Massachusetts Lowell and the President of the Academic-Industry Research Network 

William Lazonick on KCRW

Since March some 387 Boeing 737 Max jets have been grounded by regulators and airlines with no end in sight. Boeing profits have tanked. Last month the company recorded its biggest ever quarterly loss and deliveries are at their lowest since 2012. Boeing says it expects the plane to return to service by the end of this year, as it continues to focus on the plane’s software system, thought to be the cause of both plane crashes. Boeing’s crisis highlights a problem beyond flight safety. The aircraft manufacturer chose to prioritize big spending on CEO compensation and stock buybacks rather than reinvest profits on its employees, infrastructure and R and D. Last year alone, Boeing’s chief executive Dennis Muilenburg took home $30 in compensation and gains from options. Buybacks over investment; the financial strategy that’s great for shareholders but may well have cost Boeing the public’s trust.

Did Boeing prioritize profits over safety?

Since March some 387 Boeing 737 Max jets have been grounded by regulators and airlines with no end in sight. Boeing profits have tanked. Last month the company recorded its biggest ever quarterly loss and deliveries are at their lowest since 2012. Boeing says it expects the plane to return to service by the end of this year, as it continues to focus on the plane’s software system, thought to be the cause of both plane crashes. Boeing’s crisis highlights a problem beyond flight safety. The aircraft manufacturer chose to prioritize big spending on CEO compensation and stock buybacks rather than reinvest profits on its employees, infrastructure and R and D. Last year alone, Boeing’s chief executive Dennis Muilenburg took home $30 in compensation and gains from options. Buybacks over investment; the financial strategy that’s great for shareholders but may well have cost Boeing the public’s trust.

from To the Point

More from KCRW

Incumbent Kevin De León is expected to compete in a run-off election in November in LA’s 14th district — after leaked audio showed him making contentious remarks about race.

from KCRW Features

Katie Porter’s influence turned Orange County competitive, but after her Senate race loss, Democrats now face the challenge of keeping that same momentum going.

from KCRW Features

Join KCRW and NPR as the Supreme Courts hears arguments over the Colorado State Supreme Court's decision to disqualify former President Donald Trump from the state's primary ballot.

from News Special Programming

With the narrow approval of Governor Gavin Newsom’s $6.4 billion mental health bond, Prop 1, the work begins to build thousands of treatment beds.

from KCRW Features

NPR News provides live special coverage of the 2024 Republican presidential primary in South Carolina.

from NPR

A committee wants to invest in the happiness of Californias with data-proven ideas. But a multi-billion dollar state budget deficit looms over their efforts.

from KCRW Features

Will the death of a political rival to Putin push the U.S. to give more aid to Ukraine? Can a new bill help reduce crime in Washington, D.C.?

from Left, Right & Center

NPR News provides live special coverage of the 2024 South Carolina Republican presidential primary.

from News Special Programming

On Thursday, March 7, President Biden will deliver the State of the Union address to a Joint Session of Congress. Tune into KCRW to follow along NPR's live coverage at 6 p.m. PST.

from News Special Programming