'Companies don’t get better because of buybacks. Shareholders only get richer.'
that buybacks and dividends have soared as a share of GDP, while corporate investments in equipment and infrastructure have stagnated. Many of the social costs of this failure to invest have been shifted to the public-at-large, as we saw in East Palestine.Before 1982, it was illegal for corporations to purchase their own stock to artificially prop up share prices. Then Ronald Reagan’s SEC adopted a rule protecting corporations from being charged for this kind of stock manipulation.
That’s $1.2 trillion that did not go into improving quality of life for American workers or building the American economy. It just went straight into the pockets of already-wealthy shareholders and CEOs.Which is why the Inflation Reduction Act imposes a 1 percent tax on buybacks. And why Biden wants to raise it to 4 percent. The Stock Buyback Accountability Act of 2023, introduced by Senators Sherrod Brown and Ron Wyden, would do just this.
Warren Buffett, one of the richest people in America, defended stock buybacks in his highly anticipated annual letter to“When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue .”
How did the railroad accomplish this? By cutting nearly 10,000 jobs — reducing its workforce by a third while running fewer, longer trains. Some trains now stretch longer than 2 miles. It made these changes despiteThe corporation also refused to provide its remaining workers with sick leave. And it failed to invest in improved safety equipment.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tesla, Musk sued by shareholders over self-driving safety claimsThey\u0027re accused of overstating the effectiveness and safety of their electric vehicles\u0027 Autopilot and Full Self\u002DDriving technologies
Read more »
Buffett-backed EV maker BYD erases $18bn in value amid Tesla price warWarren Buffett-backed Chinese EV maker BYD has seen $18 billion in value wiped out amid Tesla's price war
Read more »
One of Credit Suisse's largest shareholders sells its stake after two-decades of holding: reportOne of Credit Suisse’s biggest shareholders, Harris Associates, has sold off its entire position in the beleaguered bank after two decades at the helm, The...
Read more »
Jill On Money: Back to BuffettWarren Buffett released the annual Berkshire Hathaway shareholder letter and the 92 year old “Oracle of Omaha” has a number of notable comments about markets and investing. For over 58 years most o…
Read more »
Proxy advisors urge shareholders to reject Ritchie Bros bid for IAAProxy advisory firms Institutional Shareholder Services and Glass Lewis on Monday recommended that shareholders reject Ritchie Brothers Auctioneers Inc's planned $7 billion acquisition of U.S. auto retailer IAA Inc .
Read more »
Diane Warren celebrates women with 14th Oscar-nominated songThe lyrics of 'Applause' encourage women to take a moment to give themselves a round of applause for all that they have achieved in their lives, amidst any adversity they face.
Read more »