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Stock buybacks

Annie Lowrey at the Atlantic:

How much might workers have benefited if companies had devoted their financial resources to them rather than to shareholders? Lowe's, CVS, and Home Depot could have provided each of their workers a raise of $18,000 a year, the report found. Starbucks could have given each of its employees $7,000 a year, and McDonald's could have given $4,000 to each of its nearly 2 million employees.

"Workers around the country have been pushing for higher wages, but the answer is always, 'We can't afford it. We'd have to do layoffs or raise prices,'" Tung said. "That is just not true. The money is there. It's just getting siphoned out of the company instead of reinvested into it."

The solution to this isn't (just) going back to the pre-Reagan rule of not allowing stock buybacks, although that wouldn't be a bad band-aid. The real issue is that workers aren't sharing in the fruits of their labor, and that suggests, er, a different economic model altogether.

By fnord12 | July 31, 2018, 12:13 PM | Liberal Outrage