Party Like It's 2007

GOP Tax Law
Thanks to the GOP tax scam, corporate America is throwing a “record-setting party” for wealthy investors – not hiring workers or raising wages. CNN Money highlights how S&P 500 companies have broken the 2007 record of stock buybacks. Key excerpts:
It's raining buybacks: Corporate America is throwing a record-setting party for shareholders.”

S&P 500 companies showered Wall Street with at least $178 billion of stock buybacks during the first three months of 2018, according to Howard Silverblatt of S&P Dow Jones Indices.”

“That's a 34% bump from last year and tops the prior record of $172 billion set in 2007, just prior to the start of the Great Recession.”

“The buyback bonanza occurred during the first full quarter after President Donald Trump signed into law a massive corporate tax cut that was supposed to lift business spending on job-creating investments.”

“…Business spending -- the stated goal of the tax law -- has not significantly accelerated, at least not yet.”

“…Companies have not significantly boosted spending on equipment, factories and other investments that create jobs and boost wages.”

Some economists aren't surprised that the early windfall of the tax cuts is going to Wall Street, instead of Main Street. They note that companies have long had access to tons of cash.”

“‘If they had plenty of cash, you shouldn't really expect having access to more would lead them to invest,’ said Alan Auerbach, director of Berkeley's Robert D. Burch Center for Tax Policy and Public Finance.”