What Wall St Costs America: Ralph Nader: How CEO Stock Buybacks Parasitize the Economy

171017_monopolynader_1026.jpgHyper enrichment of a handful of radical corporate state supremacists wasn’t what classical capitalism was supposed to be about. So says Ralph Nader in his recent take down of corporate money siphons on Evonomics.

Ralph Nader:

In a massive conflict of interest between greedy top corporate executives and their own company, CEO-driven stock buybacks extract capital from corporations instead of contributing capital for corporate needs, as the capitalist theory would dictate. ...
CEOs can take trillions of dollars away from productive pursuits without even having to ask the companies’ owners—the shareholders—for approval.

What could competent management have done with this treasure trove of shareholder money which came originally from consumer purchases? They could have invested more in research and development, in productive plant and equipment, in raising worker pay (and thereby consumer demand), in shoring up shaky pension fund reserves, or increasing dividends to shareholders.

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