Ability Quote by Janet Yellen
“An increase in shareholder value can arise for reasons other than greater efficiency, such as increased power and the resulting ability to increase profits by raising prices.”
About This Quote
Source Speech: Remarks at the Economic Club of New York, 2022
Shareholder value can grow from market power, not just efficiency, allowing firms to raise prices for higher profits
In simple terms: Companies can boost value by gaining power, not only by being more efficient
Watch for power‑driven profit strategies
Themes
Mood
Type
When to use this quote
- Regulatory review
- investment analysis
- pricing strategy
- antitrust policy
Key Concepts
Questions to Reflect On
- How do you distinguish value from exploitation?
- What safeguards limit power‑based profit growth?
Power can harm competition and consumer welfare