duración: 10:08
For a long time, it was off-limits for a corporation to buy back its own stock. Not anymore.
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American companies today spend billions on stock buybacks. So what does that mean for the US economy? And how did it help make American CEOs so unbelievably rich?
To learn more about stock buybacks, General Motors, and the Lordstown GM plant, check out the following sources:
William Lazonick, Harvard Business Review: Profits Without Prosperity (hbr.org/2014/09/profits-without-prosperity)
Irina Lendel, Melissa Piazza, Matthew Ellerbrock, Cleveland State University: Lordstown GM Plant Closure Economic Impact Study (engagedscholarship.csuohio.edu/cgi/viewcontent.cgi?article=2594&context=urban_facpub)
Emily Stewart, Vox: Walmart is paying $20 billion to shareholders. With that money, it could boost hourly wages to over $15. (www.vox.com/business-and-finance/2018/5/25/17379730/walmart-stock-buyback-worker-wages)
Jane G. Gravelle and Donald J. Marples, Congressional Research Service: The Economic Effects of the 2017 Tax Revision: Preliminary Observations (www.everycrsreport.com/files/20190522_R45736_8a1214e903ee2b719e00731791d60f26d75d35f4.pdf)
Stephen Mihm, Bloomberg: How Stock Buybacks Ambled Into Stardom (www.bloomberg.com/opinion/articles/2019-07-24/stock-buyback-history-is-a-mess)
Lawrence Mishel and Julia Wolfe, Economic Policy Institute: CEO compensation has grown 940% since 1978 (www.epi.org/files/pdf/171191.pdf)(Economic Policy Institute)
Irina Ivanova, CBS: GM bought back $10 billion in stock since 2015, double what job cuts will save (www.cbsnews.com/news/gm-bought-back-10-billion-in-stock-since-2015-double-what-job-cuts-will-save/)
Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out www.vox.com.
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Comentarios
Jarosław Kowalchuk
At the expence of the working class... no way
Hace un díaErnest
The common man in the US getting coned by Republicans once again, history repeating itself
Hace 5 díasKammy Undieh
The love of money is the root of all evil. Period.
Hace 6 díasPan Lis
They used EEEEEEEEVIL CAPITALISM to opress poor whamen and black people because as we all know capitalism is evil racist sexist system where you get paid for beating up whamen and killing black people
Hace 6 díasPetar Stamenkovic
Do yourself a favor and seek out an economy freshman. They are far more likely to know how to spell the word economy and maybe even know something about it in comparison to Vox. Listening to crickets will make you more knowledgeable about the economy than listening to this video. You may not know any more after listening to crickets, but at least you won't be lied to - consciously or not.
Hace 6 díasKevin Culver
sanders is an independent
Hace 6 díaspi_flavoUr
The EQ on the voiceover hurts my ears
Hace 8 díasMrManifolder
Bernie Sanders is the only candidate who can actually be trusted to do something about our unsustainable path toward the destruction of our republic and our planet. Under trustworthy, focused, and aggressive leadership, a grassroots people's movement can exert the necessary pressure upon politicians to twist their arms into participating in progress. The establishment has proven its unwillingness to negotiate. It's Bernie or we're busted.
Hace 8 díasYodaGrammar l
Trump: "China, Mexico, and EU are taking advantage of us!"
Hace 8 díasCruz Herrera Channel
Is this a commercial for another recession? Recession the Second.
Hace 10 díasnacha laica
good videos like this is what im subscribed. Hopefully though you wont get bought by a politician again like when you made a video for hillary.
Hace 10 díasstefan x
Before watching the video: by stealing money from the opressed ppl.
Hace 11 díasfgfgfgf drtduud
So much for the high IQ economy.
Hace 11 díasfgfgfgf drtduud
By buying back their own stocks. It used to be illegal.
Hace 11 díasJeremiah White
Vox hates all people
Hace 13 díasAlex B
Let's be honest, if you were a CEO in that position, you would do the same. I don't like how people act like CEO's are demons when the real problem is the lack of rules restricting them. Also don't act like an angel and be like "well if I were the CEO id do ____". The fact of the matter is that all of us would do the same.
Hace 13 díasShaun Riley
How they got so rich...... The Market said, you deserve! Make more, thank you!
Hace 13 díasKxiing __
5:00 no one is forcing them to work their. They can leave and get another job
Hace 13 díasIrish Eggs
there*
Hace 11 díasPronto
Does GM make cars? I thought they made breakfast cereal...
Hace 14 díasFei_Ling Bob
An investment banker makes it so investment bankers make more money at expense of the people... huh. Weird An oil CEO changes environmental protection laws so oil companies make more money at the expense of the people... huh. Weird And worse, these people get appointed so voters don’t have a say
Hace 15 díasSicao is dead
It's bad.
Hace 15 díasM Boychi
"GM returned more profits to shareholders than VW and toyota" thats awesome! Who do you think holds stock. Employees, and the American middle class. Almost anyone who has a 401k, IRA, or has a company stock option. State of california employee pension plans, ect ect.
Hace 16 díasTheMrarrie18
I think the shift towards the rich in the wealth distribution is just a long evolution/development of the wealthy to take it as far as possible. Only legislation can stop it. Also, wouldn't the Workers' board member be bribed immediately by the CEO's or make that person slowly one of them?
Hace 16 díasthis account isn't real
oh you meant exploiting poor people? who would have thought
Hace 16 díasE2
This is how a 100% free market works.
Hace 16 díasM R
Stop complaining and start a company
Hace 16 díasChuck Eller
So should Oprah Winfrey be held to these same standards and give up all of her billions too? What about millionaire athletes? What’s the cut off limit for who is evil nowadays?
Hace 17 díasErin DeNisi
The question now is whether America will vote for Elizabeth Warren or Bernie Sanders
Hace 17 díasJonah
CEOs fail to realize that they'll make more money when the working class has more money to spend
Hace 17 díasslantize
And yet people diss bitcoin
Hace 18 díasAustin Martín Hernández
Other people are rich? OMG! THAT'S NOT FAIR! THAT MONEY SHOULD GO TO ME! 😭😭😭 Selfish people. If they got the money playing fair game, then why should you care? Don't go saying that they got it illegally because that's not what most people are arguing. Most people are just jealous. Anyone can be successful. Most people though just choose to waste their money by using credit cards or taking out a worthless loan for a brand new car to show off or choosing to have children while working at McDonald's, like 6 of my cousins... I don't care how much money other people have. That's not my business.
Hace 18 díasTheGrandOptimist
It IS the business of people when their income has shrunk and not keeping up with inflation. CEO's and their companies in the 1950's were doing extremely well before buybacks and workers made a decent living compared to what we have today. It's selfish to have politicians write your tax laws so you can earn more and give less to your workers. It's selfish for them to push for more free trade deals, so they can move to China or Mexico and leave American workers unemployed. Why do you think these laws were made in the first place? Do you want another great depression?
Hace 2 díasSylvia Lopez
VOX is my hero!
Hace 18 díasCurtis Carpenter
Marginal revenue productivity, profit sharing and employee owned companies you need to think about these things. There should be laws which stop an prevent things like what happened at GM.
Hace 19 díasJ M8
Monopoly simple answer
Hace 19 díasShyen
Man, idk, maybe exploiting man power and underpaying everyone?
Hace 20 díasSteph Mo
😂 Trump supporters
Hace 20 díasChris Yeh
It's not at all surprising that Reagan appeared in this video.
Hace 20 días5122jeff
WORKING AS INTENDED, NOTHING TO SEE HERE
Hace 20 díasShane C
Trump has only been president for 3 years, Detroit and US manufacturing was decimated long before he was president, even look at the buyback chart for GM on this video the peak of the buybacks were during the Obama years, but hey lets blame Trump, but I do agree most of CEOs today purposely destroy the companies under there charge for a short term profit.
Hace 20 díasTiberal
trump good president, because he conservator(not left-man)
Hace 18 díasStephen Furr
5:51 Wow! I want one of those 1966 Pontiac Firebirds that looked like a Pontiac GTO.
Hace 21 un día