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They are also good for everybody else, because they incentivise investment that grows the economy, which means rising real wages.
by konschubert 3y ago
They are also good for everybody else, because they incentivise investment that grows the economy, which means rising real wages.
- hef19898 3y agoNow that you link stock buybavks to growing salaries, I cannot ignore it anymore. Stock buybacks only benefit shareholders and companies, not the economie. Trickle down and all that doesn't work, stock buybacks reduce a companies tax burden, especially when leveraged which they often are, do not lead to more investment. And they make the rich even richer. See, for example, here: https://hbr.org/2020/01/why-stock-buybacks-are-dangerous-for-the-economy https://hbr.org/2020/01/why-stock-buybacks-are-dangerous-for... And salaries rise, primarily, through labour organization and collective bargaining.
- YuccaGloriosa 3y agoThis...exactly
- kortilla 3y agoStock buybacks are not “trickle down” economics. It’s returning money to investors who then have to rebalance their portfolios and find something new to invest in. This is what is good for the economy.
- jehb 3y ago> It’s returning money to investors I believe the parent commenter's point was exactly this. Giving money to the investor class and expecting it to benefit everyone is the definition of trickle-down economics.
- kortilla 3y agoThe comparison is leaving it with the company and hoping something good comes out of it. That’s also trickle down economics by that moronic definition.
- deleted 3y ago[deleted]
- qwytw 3y agoIn theory (and sometimes/often in reality) it results in more effective allocation of capital. It's not about "trickle down "econonomics"" but about those investors using that money to invest into more productive businesses. > And salaries rise, primarily, through labour organization and collective bargaining. No. Supply and demand is and pretty much always was a much stronger force.
- mlrtime 3y agoIf I get RSUs quarterly and my company additionally buys back 10% of stock. My post vest RSUs should also be worth 10% more. This is effectively a bonus and my tax obligation would be lower than cash. I'm all for it as a employee AND a shareholder.