Why Stock Buybacks Contribute to Rising Inequality

Stock buybacks are responsible for major increases in both the market and executive pay, not company performance.
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Since the 1980s, although worker productivity increased and corporate profits increased, worker pay stagnated. Yet the value of capital, which includes houses, increased. Headlines continuously blare how a smaller and smaller group control a larger and larger share of the wealth in the country. Workers can’t afford houses, and many can’t pay rent.

One of the prime methods for the upward transfer of wealth has been the share buyback.