Robert Reich

Prior to 1982, stock buybacks were considered stock manipulation. It was Reagan's SEC that opened the floodgates to their abuse.

Stock buybacks don’t create more jobs. They don't increase wages. They don’t grow the economy.

They do one thing: Make corporate execs richer.

Feb 8, 2023 at 11:41pmWeb
Show threadHenryLFeb 8, 2023
@rbreich And corporate execs are useless, specially if they have an MBA https://ideas.repec.org/p/nbr/nberwo/29874.html
Eclipse of Rent-Sharing: The Effects of Managers' Business E

This paper provides evidence from the US and Denmark that managers with a business degree (“business managers”) reduce their employees' wages. Within five years of the appointment of a business manage

Show threadMauve RoseFeb 8, 2023
@rbreich: But only on paper. It does not actually increase the value of a company's holdings. People who buy stocks are participating in legalized gambling. There are always winners and losers, but the market (the house in this case) always wins. It's the brokers and the traders who need to be taxed appropriately with their commissions properly identified as income. And insider trading needs to be harshly punished.
Show threadJustMeJanisFeb 9, 2023
@Mauve @rbreich Those buybacks keep employees from being paid a livable wage, short staffing, layoffs. It should still be illegal now.
Show threadChris CarrFeb 8, 2023
@rbreich don’t they make shareholders in general “more money” by potentially raising the price(value) of the stock?
I’m sure that corporate executives make the most
Show threadCaptainSmartassFeb 9, 2023

@carrchr @rbreich they do but these gains are usually short lived because the value of the underlying asset hasn't changed. Just the number of shares available to own part of that asset. But once people sell their shares to get their gains the price inevitably falls.

If corporations wanted to return value to shareholders they would pay dividends. Which can be taxed as income. Which is why they don't do it.

Show threadT. Austin BrownFeb 9, 2023
@rbreich At the very least, public companies laying off hundreds of workers shouldn’t be allowed stock buybacks in the same 24 month period.
Show threadMadisonFeb 9, 2023
@rbreich It's always Reagan isn't it
Show threadJake MauerFeb 9, 2023
@rbreich I had no idea they were once prohibited. Is there anything the Reagan administration didn't defile?
Show threadBovistaFeb 9, 2023
@rbreich there is a curious loophole in taxation law due to which the funds used for stock buyback can be offset against the tax liability. The legality of this practice is highly tenuous and but I'm sure the corporate tax attorneys, who are the Paragons of virtue, would never engage in this sort of thing
Show threadShar_sharFeb 9, 2023
@rbreich Republican party has never been good for the economy. They have been good for the wealthy and the top 2 %... and lining their own pockets.
Show threadbhoutlookFeb 9, 2023

@rbreich
​
​The Reagan Administration also enabled #FAUXNews.

#FAUXNews enabled #DrunkUncaDonaldDuck, his #MAGAts and the #GQPDeniosaurs.

#DrunkUncaDonaldDuck weakened NATO and enabled #PutinsWar...

#Amendment45 still required to disable the stench of the #TrumpTaint.

Who's next to dish on #DrunkUncaDonaldDuck - SNL'S "Drunk Uncle" (barfly repeating lies or rumours to be popular) & Donald Duck (once loveable toon now selfish abuser with anger management issues.)

Show threadStr8ngerFeb 9, 2023
@rbreich The self-fulfilling prophecy of CONservative governMENt… Claim “government is the problem” and when elected, make it so!
Show threadHobson LaneFeb 9, 2023
@rbreich Had no idea. Thank you for revealing our blind spots.
Show threadBig Head TalesFeb 9, 2023
@rbreich
Every financial manipulation in America seems to stem from #Reaganomics and the #Republicans making the filthy rich richer at the expense of working Americans.
Show threadSusan LyonsFeb 9, 2023
@rbreich we need to do something about Capital Gains! You pay if your stocks increase or decrease.
Show threadBrian HawthorneFeb 9, 2023
@rbreich And they also transfer wealth from workers to shareholders.
Show threadJoe ❌👑Feb 9, 2023
@rbreich More accurately they make all of the existing stockholders richer. But that is usually at the expense of the workers and the future of the company, because instead of investing the profits in improving the company it just raises the value of each share by decreasing the number of outstanding shares.
Show threadDeesaroo68Feb 9, 2023
@rbreich a republican creation, crazy how those things all add up to the rich get richer,….etc.
Show thread⚯ Michel de Cryptadamus ⚯Feb 9, 2023
@rbreich you missed the all-important "without incurring any taxes" part.
Show threadTwitter RefugeeFeb 9, 2023
@rbreich
I work for a top bank. They took their tax savings and did a huge stock buyback. Within a couple months they laid off 10% of the workforce. Large corporations give a flip about their employees. It's all about profits and return to stockholders. That's the current reality. How do we change that?
Show threadgavinisdie Feb 9, 2023
@rbreich I want to make a reply to this but I have nothing to say, so have a random meme
Show threadpaulFeb 9, 2023
@rbreich
👏 👏
Show threadAmersFeb 9, 2023
@rbreich Kevin McCarthy sure didn't like Biden railing on stock buyback. Based on Kevin being really aware of his public visibility in that moment, seemed like the biggest disagreement of any issues brought forward by prez.
Show threadF Steve BFeb 9, 2023
@rbreich How do they avoid short term capital gains? I sold my options when I left a company and had to pay half of sale in taxes.
Show threadDr. Jeanne BeckmanFeb 9, 2023
.@rbreich
I want to know how many corps used PPP loans for stock buybacks and does anyone have standing to sue them?
Show threadauthor_is_ShrikeTron🔠💉x5Feb 9, 2023
@rbreich Sounds like QE for stocks.
Show threadScott the F is implicit BaxterFeb 11, 2023
@rbreich Buybacks prop up shareholder value. That is the CEO's job, and that is the company's reason for being.