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Short-Termism

"Short-Termism" is a term often used to critique an excessive focus on short-term results at the expense of long-term interests. For example, in corporate contexts, this can mean making decisions that maximize quarterly revenues at the expense of long-term firm interests or value-creation.
Across the U.S. economy from 2015 - 2017, companies spent 58.6% of their net profits on stock buybacks. 85% of mining, quarrying, and oil and gas extraction companies spent more than half of their profits on stock buybacks between 2015 - 2017. An analysis by the SEC Commissioner found that executives frequently exploit stock buybacks to cash out their company shares at inflated prices. Stock buybacks redirect available cash from investments to repurchase shares, temporarily driving up share prices at the expense of investment. "Patient capital" (low-interest, long-term loans) via public financing helped Germany resist colonization by institutional investors (seeking short-term gains). In 2015, typical German CEO made $5.6 million, while their U.S. counterparts made $14.9 million.
UBI in the US and Advanced Countries Investment-Less Growth: An Empirical Investigation Buybacks Around the World Fighting Short-Termism with Worker Power Stock Buybacks and Corporate Cashouts Curbing Stock Buybacks: A Crucial Step to Raising Worker Pay and Reducing Inequality
Jesse Rothstein Hilary W. Hoynes Thomas Philippon Germán Gutiérrez Theo Vermaelen Urs Peyer Alberto Manconi Susan Holmberg
Basic Income Codetermination
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