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November 25, 2016 08:28 am PST
Original Link: http://feeds.boingboing.net/~r/boingboing/iBag/~3/hFX0tUxuVII/giving-companies-more-money-l.html
Giving companies more money (loans, tax-breaks) only increases investor payouts, not expansion
Before the deregulation bonanza of the 1980s, corporations were expected to use debt and the public markets as the capital of last resort: they would pay "normal" dividends, then use the left over money to increase pay and fund expansion; but after the birth of "shareholder management," companies have acted like homeowners before the financial crisis: borrowing heavily to pay investors, at the expense of expansion and wages -- but unlike homeowners, corporate management gets to duck the bill when it comes due. (more…)
Original Link: http://feeds.boingboing.net/~r/boingboing/iBag/~3/hFX0tUxuVII/giving-companies-more-money-l.html
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