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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsSchumer & Sanders Op Ed NYT - Limit Corporate Stock Buybacks
[link://https://www.nytimes.com/2019/02/03/opinion/chuck-schumer-bernie-sanders.html|
Between 2008 and 2017, 466 of the S&P 500 companies spent around $4 trillion on stock buybacks, equal to 53 percent of profits. Another 30 percent of corporate profits went to dividends. When more than 80 percent of corporate profits go to buybacks and dividends, there is reason to be concerned.
This practice of corporate self-indulgence is not new, but its grown enormously. Fueled by the Trump tax cut, in 2018, United States corporations repurchased more than $1 trillion of their own stock, a staggering figure and the highest amount ever authorized in a single year.
This practice of corporate self-indulgence is not new, but its grown enormously. Fueled by the Trump tax cut, in 2018, United States corporations repurchased more than $1 trillion of their own stock, a staggering figure and the highest amount ever authorized in a single year.
That is why we are planning to introduce bold legislation to address this crisis. Our bill will prohibit a corporation from buying back its own stock unless it invests in workers and communities first, including things like paying all workers at least $15 an hour, providing seven days of paid sick leave, and offering decent pensions and more reliable health benefits.
In other words, our legislation would set minimum requirements for corporate investment in workers and the long-term strength of the company as a precondition for a corporation entering into a share buyback plan. The goal is to curtail the overreliance on buybacks while also incentivizing the productive investment of corporate capital.
In other words, our legislation would set minimum requirements for corporate investment in workers and the long-term strength of the company as a precondition for a corporation entering into a share buyback plan. The goal is to curtail the overreliance on buybacks while also incentivizing the productive investment of corporate capital.
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Schumer & Sanders Op Ed NYT - Limit Corporate Stock Buybacks (Original Post)
Nanjeanne
Feb 2019
OP
Well you could say that about everything. Or say Now is the time to do it also. Or sit
Nanjeanne
Feb 2019
#3
Wounded Bear
(58,706 posts)1. Good idea, now that it is too late...
Nanjeanne
(4,975 posts)3. Well you could say that about everything. Or say Now is the time to do it also. Or sit
on our asses and do nothing.
WeekiWater
(3,259 posts)2. It's a big deal for numerous reasons.
Tom Rinaldo
(22,913 posts)4. I am very glad to see this
More evidence of pressing forward with OUR agenda, not just playing defense against Trump (which is essential too of course.)
smirkymonkey
(63,221 posts)5. Hear, Hear!
Great idea!
Joe941
(2,848 posts)6. As usual Bernie is on the cutting edge of policy.
JudyM
(29,274 posts)7. This has his signature worldview all over it. Smart to get Schumer's public buy-in from the get-go.
Positioning Dems very clearly on these issues!