27 March 2020

The Rich Get Richer at No Risk, While the Working Man Gets Screwed

Here is a good summary of the why a bailout for corporations can be bad.

In short: hospitality and airline companies have been plumping up their own executive comp plans with stock buybacks for the last 10 years, leaving them in very risky positions when times get tough. Stock buybacks are great for rich people, not so good for rank and file employees (who either do not own enough stock, or own no stock at all).

This is very good business! The executives that got paid don't have to give the money back, and now they can rely on you, the taxpayer, to bail them out.

America, everybody!


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