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Investment

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.
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
Thomas Philippon Germán Gutiérrez Susan Holmberg James A. Robinson Pascual Restrepo Suresh Naidu Daron Acemoglu Katy Milani
Codetermination Basic Income
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