In a Mexican study, infants whose families received conditional cash transfers, averaging one third of household income, show long-term benefits to education, wages, geographic mobility, and family formation (20 years later).
On average, companies used to reinvest 20 cents of each dollar of their operating returns into their businesses; that amount has dropped by half—to just 10 cents of each dollar since 2002.”
Across the U.S. economy from 2015 - 2017, companies spent 58.6% of their net profits on stock buybacks.
From 2015 - 2017, the U.S. restaurant industry spent more in stock buybacks than it made in profits - 136.5%. Buybacks were financed through debt and cash reserves.
If McDonald's redirected all 2015 - 2017 funds used on stock buybacks to raises for its employees, it could have given each of its 1.9 million workers nearly $4,000 more per year.
A primary criticism of stock buybacks is that they draw corporate resources away from other growth-inducing activities, like investing in research and development, spending on capital investments, or improving worker compensation.
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Investment-Less Growth: An Empirical Investigation
Fighting Short-Termism with Worker Power
Democracy Does Cause Growth
U.S. Senator Tammy Baldwin Introduces Legislation to Rein In Stock Buybacks and Give Workers a Seat at the Table
Curbing Stock Buybacks: A Crucial Step to Raising Worker Pay and Reducing Inequality
Education, Income and Mobility: Experimental Impacts of Childhood Exposure to Progresa after 20 Years
James A. Robinson
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