via Dollars & Sense I by Alejandro Reuss I September 20, 2020

Coronavirus, Capitalism, and the Workers’ Movement

“…The airline executives are not simply lying that the money is gone. A lot of it is gone: Economist William Lazonick, a longtime critic of stock buybacks, notes that the airlines and freight companies paid out about one-fourth of their profits over the last decade in the form of dividends and over half in the form of buybacks. The stock owners—including the top executives themselves—made away with the loot. Even this, of course, does not necessarily mean that giant corporations are really unable to keep paying workers. They could spend the cash they still have on hand or borrow in private credit markets (the latter trenchantly suggested by economist Robert Reich in a statement opposing corporate bailouts)…”

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