Even if we accept that companies returning money to shareholders means that they can't find good use for the capital doesn't mean the government will. If anythi

Even if we accept that companies returning money to shareholders means that they can't find good use for the capital doesn't mean the government will. If anything maybe the shareholders themselves can find better use for the money. After all they have wider avenue of possible investments (things outside of the scope of what the company is doing). There is also the whole fairness side of things: even if it's a bit less efficient for shareholders to have the money or even if they want to spend it for consumption doesn't mean the government should take it.