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Schumer and Sanders: Limit Corporate Stock Buybacks
New York Times ^ | Feburary 3, 2019 | Chuck Schumer and Bernie Sanders

Posted on 02/04/2019 1:59:38 PM PST by reaganaut1

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To: reaganaut1
Many pension plans are funded by holding index funds that invest in these dividend paying stocks, so more Americans than just stockholders benefit from dividends.

-PJ

41 posted on 02/04/2019 3:00:02 PM PST by Political Junkie Too (The 1st Amendment gives the People the right to a free press, not CNN the right to the 1st question.)
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To: reaganaut1

Two questions:

1. Who is more efficient at deploying resources and capital, Amazon or the US Government?

2. Who then is best able to make decisions about how to maximize return on capital expenditures, Amazon or the US Government?

I rest my case.


42 posted on 02/04/2019 3:02:12 PM PST by Be Free (When guns are outlawed, only outlaws will have guns.)
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To: reaganaut1
Another 30 percent of corporate profits went to dividends.

From where I sit, that's a good thing. And the stock buybacks are good, too.

43 posted on 02/04/2019 3:03:10 PM PST by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: reaganaut1
when a company buys back its stock, boosting its value, the benefits go overwhelmingly to shareholders and executives, not workers.
When a company goes public, its sale of stock raises money for the company to invest. Obviously, the people who do that believe in the market they are selling products into, and in the ability of their company to compete in that market.

What if a company management no longer sees a value proposition in betting on their ability to prosper in that market?

If you think you can,
or you think you can't,
you're probably right. - Henry Ford

Chuck Schumer and Bernie Sanders amply illustrate the validity of Adam Smith’s observation that

The statesman who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it.

The Wealth of Nations, Book IV, Chapter II


44 posted on 02/04/2019 3:08:04 PM PST by conservatism_IS_compassion (Socialism is cynicism directed towards society and - correspondingly - naiveté towards government.)
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To: central_va

Thanks. I was hoping to get a polite correction from someone on here who has vastly more knowledge than I do.


45 posted on 02/04/2019 3:09:55 PM PST by rlmorel (Leftists: They believe in the "Invisible Hand" only when it is guided by government.)
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To: reaganaut1

If they don’t already report their buybacks to the SEC, then it be more reasonable to just have them report.

If some dummy investor looks only at the price going up a bit to make a buy decision, that’s their problem.


46 posted on 02/04/2019 3:21:19 PM PST by fruser1
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To: Red Badger

Every dollar that escapes their grasp makes them go crazy.


47 posted on 02/04/2019 3:52:12 PM PST by Farmer Dean (168 grains of instant conflict resolution)
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To: Red Badger

Exactly. Their premise is absurd.


48 posted on 02/04/2019 3:58:21 PM PST by Sequoyah101 (It feels like we have exchanged our dreams for survival. We just hava few days that don't suck.)
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To: reaganaut1
When more than 80 percent of corporate profits go to buybacks and dividends, there is reason to be concerned.

Both are mechanisms for transferring the money to shareholders. You know, the people who own the company.

49 posted on 02/04/2019 4:25:28 PM PST by pepsi_junkie
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To: reaganaut1
When more than 80 percent of corporate profits go to buybacks and dividends, there is reason to be concerned.

For example "what is happening to the other 20% of the profits if they aren't going to the owners."

Most of the suggestions by the socialists increased costs and thus decreased profits. So if a company with a $100 million dollar profit distributes $80 million and retains $20 million instead spent that $20 million on projects approved by the Dems its profit would drop to $80 million. If it still distributed that $80 million to the owners then that would be 100% and the NY Times would be that much more outraged.

How about cutting wages, increasing total profits to $120 million and only give two-thirds to the owners? < /s>

50 posted on 02/04/2019 4:48:33 PM PST by KarlInOhio (Leave the job, leave the clearance. It should be the same rule for the Swamp as for everyone else.)
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To: Red Badger
This is a 'crisis'?...............…

Yes. Anytime anyone spends their own money in a manner unapproved by the crooks in DC, it is a crisis.

51 posted on 02/04/2019 4:52:25 PM PST by Toddsterpatriot (TANSTAAFL)
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To: rockinqsranch

The only thing scmucker ever ran is his mouth.


52 posted on 02/04/2019 7:58:48 PM PST by genghis
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To: sparklite2

We need to expose financial hypocracies


53 posted on 02/05/2019 3:09:02 AM PST by ronnie raygun (nic dip.com)
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To: Red Badger

Exactly - how many folks w/o certain stocks tried to buy them and couldn’t find any available? Don’t buy stocks and don’t expect to profit from them....must be a racist/sexist/homophobic principal that hurts women/children/minorities most...just waiting for them to clarify the fine points for us.


54 posted on 02/05/2019 3:10:19 AM PST by trebb (Don't howl about illegal leeches while not donating to FR - it's hypocritical.)
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To: Farmer Dean

Tax Cuts make them insane.......................


55 posted on 02/05/2019 6:15:17 AM PST by Red Badger (We are headed for a Civil War. It won't be nice like the last one....................)
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To: ronnie raygun

Stock buy backs are hypocrisy?


56 posted on 02/05/2019 8:14:53 AM PST by sparklite2 (Don't mind me. I'm just a contrarian.)
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