Imagine you are a shareholder in a big company and the top executives are sitting on huge amounts of cash and are not interested in putting it to work through productive capital investments, research and development, reducing company debt or paying employees a higher wage. What would you want done about it? Since you and other shareholders are the owners of the company, you’d likely say “give us back our money in cash dividends.”
The 2009 General Motors bailout,funded by US taxpayers, is a classic example of "vanishing peoples's wealth".
GM used the money to buy back stock, close US factories, build factories in China, costing MORE US jobs than had already been dumped.
With the first Chinese built GM cars arriving in US dealers' showrooms this month (Buicks), July 2016 is a major milestone in this scam.
Sad to see POTUS candidates bragging about how they supported this bailout travesty.
Thank you, Mr. Nader for this information. You are a national treasure.
Buybacks used to boost a company's stock without actually investing in real and tangible investments aimed at overall improvements remind me of the way banks create money out of thin air.
These are illegitimate systems of wealth assessment, commerce, and shared values. And when the circus tent that holds up all this corruption finally collapses, it won't be pretty. Let's hope it hits those at the top in the head first.
Most systems work when people are prevented from becoming too rich and powerful.
With republicans it is never about jobs it is always about corporate....And they repeat the constant company mantra of rhetorical media sound bites.cut taxes cut taxes yada yada no minimum wage yada yada..Job creators do this yada yada job creators that yada yada....Why any self respecting worker living check to check would ever vote for a republican is amazing to me....True we have some asshole democrats who also cater to corporate...But all the GOP are bought off assholes of the worst dimension....They're corruption is absolute....And the GOP are 100% the 1%.
In large part the result of corporations in this country being able to browse through fifty different sets of Laws of Incorporation and choose the one that gives them the most freedom. They don't even have to be located in the same state though some require a token presence in the state, much like corporations that off shore their profits to the Dominican Republic have to have a mail drop in that country. For several years the big winner has been South Dakota, yet a few of the East Coast states have been desperately trying to close that gap for years.
Good one, Ralph. Why invest money to make money when you can shuffle money to make money?