Top US companies lay off thousands of workers while rewarding shareholders amid coronavirus pandemic

“In a downturn like this the first thing a company should do is give up any distributions to shareholders,” William Lazonick, an economist at the University of Massachusetts Lowell, told The Post. “But in a crisis, companies will differ. Some…

U.S. companies cut thousands of workers while continuing to reward shareholders during pandemic

“William Lazonick, an emeritus economics professor at the University of Massachusetts at Lowell, has been one of the leading critics of companies that distribute cash to shareholders through stock buybacks and dividends rather than reinvesting the profits into employees, innovation…

How to manage public stake in bailed-out companies

“The stimulus bill passed by Congress in response to the COVID-19 economic crisis includes massive bailouts for airlines and other large companies deemed necessary for national security, in the aggregate around $500 billion, including $25 billion for company payrolls.”… via The American…

Share buybacks have been the ‘only net source of money entering the stock market’ since 2008

“Like every great crisis, the coronavirus pandemic has laid bare everything rotten and degenerate in capitalist society. Nowhere is that exposure more pronounced than in the case of the stock market—that vast institutionalised mechanism through which the wealth of society,…

The COVID-19 Pandemic Exposes Balance-Sheet Frailties. It Is Time To Enforce Fiscal Discipline!

“Stock-based compensation plans for corporate executives are the main driving force behind the stock buyback binges. Professor William Lazonick writes, “Stock-based instruments make up the majority of the executives’ pay, and in the short term buybacks drive up stock prices.”…

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Top Economist: Instead of Basic Income, Let’s Keep People Working Productively During the Crisis

“As the pandemic rages, everyone is scrambling to figure out how to protect people getting economically pummeled. Americans may soon get a cash injection to help them fight the economic devastation of Covid-19 as part of a stimulus bill agreed…

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4 Ways to Eradicate the Corporate Disease That is Worsening the Covid-19 Pandemic

“It’s time for business executives, employees, and taxpayers to come together to help get us out of the pandemic and create conditions for a sustainable and equitable future Here are the key ways to respond to the coronavirus crisis and…