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Last year, more than $ 1 trillion in buyouts were announced by large companies, who had a lot of money to spend after the corporate tax cut of late 2017. Senators argued that these redemptions had been made instead of investing in employees' salaries and equipment. Some have even fired workers while buying back billions of dollars of stock.
Companies are buying back their shares because they can not do anything else with their money – and this is the fundamental issue, Swonk said.
"Why do not companies invest? One of the reasons they do not invest is due to Washington's political dysfunction," she said. "They are very uncertain and are walking on eggs in what should be a very good economy."
Brian Brenberg, president of King & # 39; s College's business and finance program in New York, is totally opposed to the Sanders and Schumer project. He called it "completely ridiculous" and a "destructive idea" on Monday on "Closing Bell".
He believes that share buybacks ultimately benefit the economy.
"If companies do not have good ideas on where to spend their money, they should give it back to investors and that money will be channeled to companies that have growth ideas," Brenberg said. .
– CNBC
Liz Moyer
contributed to this report.
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