Was the Southwest Airlines Meltdown Caused By the "Great Share-BuybackScam"?
Great article by thomhartmann in .dailykos.com
Well worth reading.
https://www.dailykos.com/stories/2022/12/30/2144500/-Was-the-Southwest-Airlines-Meltdown-Caused-By-the-Great-Share-Buyback-Scam
Senator Tammy Baldwin wrote in a 2015 letter to the SEC’s chair:
“Stock buybacks use profits to purchase a company’s own stock instead of investing in the worker training, research, or innovation necessary to promote long-term growth. ... In the past, this money went to productive investments in the form of higher wages, research and development, training, or new equipment. Today, cash is being extracted from companies and placed on the sidelines. Buybacks are now undermining the stock market’s role in capital formation.”
Senator Elizabeth Warren noted:
“Buybacks create a sugar high for the corporations. It boosts prices in the short run, but the real way to boost the value of a corporation is to invest in the future, and they are not doing that.”
Apple and Big Oil are also making the move. I would tax all stock buy backs at 100%
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