Tuesday, July 23, 2019

Drowning in Cash

40-60 percent of tax cuts have been put into stock buybacks, according to several analysts. The Federal Reserve Bank has calculated that the buybacks are equivalent to 4 percent of the economy. Man, oh man, what the economy would be doing if that stock buyback cash had been invested in workers, new products/services and other economic growth engines!! Maybe instead of a tepid 2 percent GDP growth, we’d have 6 percent!

...if we could find the workers. And we were innovative enough to know what new products/services could be derived with fresh investments (like renewable energy, carbon sequestration, youth education systems, worker education, health care mitigation—not letting obesity, diabetes and heart disease get any worse—mental health assistance, global refugee crisis and so on)! C’mon, all you companies drowning in cash, you can come up with something better to do with the cash—like actually solving some problems—instead of just buoying up the stock price, the stock market and pension/other retirement funds.

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