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Sure, we should be encouraging reinvestment but how do you resolve the unfairness of companies that choose to reinvest themselves vs. pay out a dividend and all
by aeternus 8y ago
Sure, we should be encouraging reinvestment but how do you resolve the unfairness of companies that choose to reinvest themselves vs. pay out a dividend and allow investors to re-invest?
Amazon benefits from many government-funded programs: educated workforce, road & rail infrastructure, national defense, judicial contract-enforcement, etc.
Is it fair that a company that reinvests gets all that for free while a company that makes a profit pays substantially?
- SamReidHughes 8y agoThis is true for any form of taxation, such as income/payroll taxes when paying for daycare versus watching your kids yourself.
- malandrew 8y agoHow do you resolve that? You let the market decide. By buying Amazon, you’ve decided that Amazon knows how to reinvest that money better than you. If that were not the case, you can sell Amazon shares and buy a company that gives you dividends that you can reinvest as you see fit.