Dr. Evil
20×102mm Vulcan
Stock Buybacks: Chuck Schumer and Bernie Sanders Are Wrong | National Review
Man do I wish bad things for these two.
Man do I wish bad things for these two.
Chuck Schumer and Bernie Sanders Have a Plan to Kill the Stock Market
- Thread starter Dr. Evil
- Start date
TheMoneyPit
.357 mag
They are both just filled with good ideas.
ProgSpear
.338 Win Mag
Oddly, Schumer doesn’t seem to recocognize the source of his key voting block’s wealth. Talk about killing the golden goose.
livingston
20×102mm Vulcan
When a company repurchases shares, their value rises, and employees benefit. The senators think something is wrong with that.
Senators Chuck Schumer of New York and Bernie Sanders of Vermont want to penalize “self-indulgent” corporations that buy back their own stock. In a recent article in the New York Times, they argued that when companies repurchase shares, not only do the vast majority of Americans not benefit, but income inequality is exacerbated since only wealthy shareholders and corporate management profit.
Despite decades of extraordinary success that the United States has enjoyed and that we enjoy today, Schumer and Sanders believe that something sinister is taking place in the corporate world. They call buybacks a form of “corporate self-indulgence.” Why? Because
corporate boardrooms have become obsessed with maximizing only shareholder earnings to the detriment of workers and the long-term strength of their companies. . . . Companies, rather than investing in ways to make their businesses more resilient or their workers more productive, have been dedicating ever larger shares of their profits to dividends and corporate repurchases.
Now even some Republicans are getting on board. Florida senator Marco Rubio has suggested changes in the tax law to discourage buybacks because he says they “inflate” the prices of stock “at the expense of future productivity & job creation.”
These senators don’t seem to fully understand that the purpose of a business is to allocate resources in a way that maximizes per share results over the long run. To think that this can be achieved at the expense of workers, at the expense of investing in research, at the expense of developing new and better products, at the expense of investing in equipment to both lower the cost and increase the quality of production, etc. is sophomoric. This underscores their lack of knowledge about investing and financial markets.
Senators Chuck Schumer of New York and Bernie Sanders of Vermont want to penalize “self-indulgent” corporations that buy back their own stock. In a recent article in the New York Times, they argued that when companies repurchase shares, not only do the vast majority of Americans not benefit, but income inequality is exacerbated since only wealthy shareholders and corporate management profit.
Despite decades of extraordinary success that the United States has enjoyed and that we enjoy today, Schumer and Sanders believe that something sinister is taking place in the corporate world. They call buybacks a form of “corporate self-indulgence.” Why? Because
corporate boardrooms have become obsessed with maximizing only shareholder earnings to the detriment of workers and the long-term strength of their companies. . . . Companies, rather than investing in ways to make their businesses more resilient or their workers more productive, have been dedicating ever larger shares of their profits to dividends and corporate repurchases.
Now even some Republicans are getting on board. Florida senator Marco Rubio has suggested changes in the tax law to discourage buybacks because he says they “inflate” the prices of stock “at the expense of future productivity & job creation.”
These senators don’t seem to fully understand that the purpose of a business is to allocate resources in a way that maximizes per share results over the long run. To think that this can be achieved at the expense of workers, at the expense of investing in research, at the expense of developing new and better products, at the expense of investing in equipment to both lower the cost and increase the quality of production, etc. is sophomoric. This underscores their lack of knowledge about investing and financial markets.
repete
.338 Win Mag
It should be mandatory for all legislators to sit view the movie ATLAS SHRUGGED and pass a quiz afterward. I think they would learn something but then again they might use it as a road map.
byron
.308 Win
IF WE ONLY HAD A BRAIN
Blimey
.450/400 Nitro Ex
I stopped reading here. How is that different from the stock market anyway? Poor people aren't buying shares in the S&P 500.
Shadow2
6.5 Creedmoor
Corporations are growing more powerful then government of course the "people in power" are going to fight back. Don't know what their after here but i do support getting rid of corporate person hood.
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Acer-m14
.950 JDJ
with the stock market we have billionaires in office 10 houses and fancy cars and gun toting security with a pay check of what 170K or so a yr ..
inside deals not allowed for the little guy ..
with out the stock market or FUAC Tax breaks ..go get a bank loan and work for it .. your plan works or it does not .. try again ..
inside deals not allowed for the little guy ..
with out the stock market or FUAC Tax breaks ..go get a bank loan and work for it .. your plan works or it does not .. try again ..