by Summary:
I have been arguing, since 2016 (e.g., here, here, and here), that one of the likely outcomes of the kind of corporate tax cuts Donald Trump and his fellow Republicans have supported—and, as we saw, eventually rammed through—would be an increase in inequality. That’s because corporations would likely use a portion of their higher profits to engage in stock buybacks, leading to an increase in stock prices. And stock ownership in the United States is already grotesquely unequal. Therefore, the rise in equity prices would disproportionately benefit the small group at the top of the wealth pyramid. And that’s exactly what is happening. As CNN Money reports, U.S. corporations have showered Wall Street with 4 billion of stock buyback announcements so far this year.... Occasional Links &
Topics:
Mike Norman considers the following as important: inequality, stock buybacks, Trump tax cuts
This could be interesting, too:
I have been arguing, since 2016 (e.g., here, here, and here), that one of the likely outcomes of the kind of corporate tax cuts Donald Trump and his fellow Republicans have supported—and, as we saw, eventually rammed through—would be an increase in inequality. That’s because corporations would likely use a portion of their higher profits to engage in stock buybacks, leading to an increase in stock prices. And stock ownership in the United States is already grotesquely unequal. Therefore, the rise in equity prices would disproportionately benefit the small group at the top of the wealth pyramid. And that’s exactly what is happening. As CNN Money reports, U.S. corporations have showered Wall Street with 4 billion of stock buyback announcements so far this year.... Occasional Links &
Topics:
Mike Norman considers the following as important: inequality, stock buybacks, Trump tax cuts
This could be interesting, too:
Robert Skidelsky writes The Roots of Europe’s Immigration Problem – Project Syndicate
Angry Bear writes What Happens When Corporate Places Greater Emphasis on Stock Buybacks Rather than Quality?
Nick Falvo writes Report finds insufficient daytime options for people experiencing homelessness
Nick Falvo writes Housing and homelessness in London (England)
I have been arguing, since 2016 (e.g., here, here, and here), that one of the likely outcomes of the kind of corporate tax cuts Donald Trump and his fellow Republicans have supported—and, as we saw, eventually rammed through—would be an increase in inequality. That’s because corporations would likely use a portion of their higher profits to engage in stock buybacks, leading to an increase in stock prices. And stock ownership in the United States is already grotesquely unequal. Therefore, the rise in equity prices would disproportionately benefit the small group at the top of the wealth pyramid.
And that’s exactly what is happening. As CNN Money reports, U.S. corporations have showered Wall Street with $214 billion of stock buyback announcements so far this year....Occasional Links & Commentary
Buyback this!
David F. Ruccio | Professor of Economics, University of Notre Dame