How Stock Buybacks Fuel the Racial Wealth Gap
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- Опубліковано 2 чер 2024
- Lenore Palladino (@UMass.Amherst) explains how stock buybacks drive inequality, and why we desperately need a policy shift.
Palladino highlights how these unregulated practices, booming since the 1980s, not only manipulate market prices but also significantly influence the racial wealth gap in the United States. She explains that shareholder primacy, a doctrine deeply embedded in corporate law, prioritizes increasing share prices over other aspects of corporate responsibility. This focus disproportionately benefits wealthy, predominantly white households, who own most corporate equity, exacerbating the racial wealth gap. Moreover, she criticizes the extensive funds spent on stock buybacks, around $6.3 trillion in the 2010s, which could otherwise enhance corporate productivity and worker wages. Palladino advocates for regulatory changes and new legislation to address these issues, emphasizing the importance of industrial policy-making and investment in public welfare over shareholder gains. Her insights offer a critical perspective on the intersection of corporate practices, market manipulation, and social inequality.
Learn more at www.lenorepalladino.com/
I love this channel. Very important topics being discussed. A stodgy field, economics -- but it's nice to see innovative ideas being pursued by some in the field.
1:25 Why yes, I would enjoy an entire series diving into the history and law surrounding shareholder primacy. Perhaps even a speculative look at how corporations would function without such a focus.
Excellently presented. I was engaged from begining to end.
11:40 you nailed in the wall !
More egregious is limited liability. The extent to which corporations are able to internalize value, and externalize harm, is staggering. The law doesn’t even attempt to strike a balance, it just allows for the large scale transfer of value to shareholders, irregardless of direct or indirect effects of their firms activities. How a society is able to justify a right to profit from ownership, but deny any responsibility from that same ownership strikes me as contradictory. An indefensible moral trade-off that can be sustained only through ignorance, malice, or a significant cost to the soul.
Make buybacks ILLEGAL.
Abolish capitalism.
@@timmy-wj2hc Amen
tax the rich until there are rich no more!@@timmy-wj2hc
In the meanwhile-we could at least regulate something@@timmy-wj2hc
I didn't realise that there were ethic restrictions on who could buy stocks.
Change the name of the chanel to WOKE ECONOMIC THINKING
Why?
Oah. Blacks dont own enough shares. Maybe in their eyes.
But me too, an old white man, I dont own enough shares too.
Is it the jews fault, who may own the most shares?
Or is our in some aspects unjust market economy over all the best way to keep up our wealth,
And do the blacks and me too in spite of the inequality not live a much better life, than in marxist countries.
May be its better to accept some injustice from market-capitalism,
than accepting the totalitarian decisions from central planers,
where ideally all regular people are equal (with some who are more equal)
and overall never enough goods to fix our needs.
Name one "Marxist country"
Like nearly all here, in the end another marxist central planner.
Share buybacks are not per se bad for the company.
As companies may have reasons for selling shares, they might have reasons to end this kind of financing their D&R and expansion
and to replace it with bank credit.
What I had to critique with share buybacks is the same I critique with all other outcomes of enterprises,
who f.ex. pay boni and so on for a handful of years of straw fire, without the clause to take the hundreds of millions of dollar back from the management,
if they destroyed the sustainability of the company in the long run.
Interestingly large companies sadly are lead nearly in the same way, marxists lead whole countries into the abyss.
How could one fix the straw fire management. Why do the shareholder not care.
I would like to tax most of the profit of speculators, if they dont hold at least on year.
After eight years of holding the share, taxation should reach the lowest percentage.
And the most important, and I wonder why the marxist every time fail wit it;
I would forbid credit creation for speculation and financial industries, but only allow and enforce credit creation for the productive economy.
Sometimes I suspect the marxists to be corrupted by speculative credit creation cronies.
Your racial lens will cause more issues than it would ever purport to solve. Knowing your education level I'm almost at a complete loss of words hearing your explanation of how to deal with individuals and economic issues. The more a government manipulates markets the worse the markets get. I'm so disappointed I can't even begin to explain here. Here is some advice, buy a Fortune 500 Index fund and if you want corporate stock, do your homework and then buy what you want.
Neoliberal children are hilarious 😂😂😂
you think what they're doing will be good for your health? Ukraine and Palestine are coming for you little tim.@@timmy-wj2hc