SMLL - Buybacks Are Bad But Not For The Reasons You Think

The megabillion-dollar corporate bailouts raining down in the coronavirus response are giving new urgency to voices on the left excoriating corporate stock buybacks. How can we pour money into these firms, even as they pump gushers of money out the other end that could be spent on hiring and investment?

Much of the pushback against that view is unabashed hippie-punching, claiming that lefties don't understand basic finance and business. "Dividend payments drain money just like buybacks do. Why aren't you complaining about those? And, the money distributed by either method gets reinvested in other companies.

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