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>A few executives and directors (who are already the richest humans that have ever lived) are adding orders of magnitude to their hoards with these massive buyb
by navigatesol 7y ago
>A few executives and directors (who are already the richest humans that have ever lived) are adding orders of magnitude to their hoards with these massive buybacks.
First of all, it isn't "we". This is not public money. It belongs to the shareholders, and buybacks are one way to return the money (tax efficiently). Why should it be horded by the company? If there is nowhere to invest, give it back to the owners to spend or invest as they see fit. Second, buybacks don't magically raise the share price. The number of shares outstanding decreases, but so does the cash on the balance sheet.
There is plenty of literature on stock buybacks and how they work, you simply need to look beyond the populist headlines.
- ceejayoz 7y ago> First of all, it isn't "we". This is not public money. You could argue it should have been. https://www.bloomberg.com/news/articles/2019-01-16/here-s-how-u-s-businesses-actually-used-their-tax-cuts https://www.bloomberg.com/news/articles/2019-01-16/here-s-ho... > On Jan. 1, 2018, the biggest, most sweeping U.S. corporate tax cut ever enacted went into effect. A year later, we’re able to see how businesses used all that extra cash. > The short answer: to buy back shares.
- cameronbrown 7y agoTrump's tax cut helped big business, that's true. But for each corporate buyback there were thousands of mom and pop shops that benefited and invested.
- richardwhiuk 7y agoCitation needed.
- navigatesol 7y ago>The short answer: to buy back shares. I don't understand the issue. Why should "you" have any say in how others decide to spend their money? The tax cuts are a separate argument. >year later, we’re able to see how businesses used all that extra cash. Post hoc, ergo propter hoc. Corporate cash balances have been inflated for a decade. The previous high was in 2007.
- ceejayoz 7y ago> The tax cuts are a separate argument. Nah. > Why should "you" have any say in how others decide to spend their money? Because they're getting it by lobbying to saddle me with the exploding deficit their cushy tax cuts have grown dramatically.