Thread by @SenSchumer

THREAD: This month, I co-wrote an op-ed that suggested that companies be obligated to invest more in their workers and their communities prior to buying back excessive amounts of their own stock. medium.com/@SenSchumer/bu…

I’ve heard criticism both publicly and privately that suggests that — when corporate executives and shareholders are given free rein to decide how to appropriately reallocate capital offered through stock buybacks and dividends — it works out best for society.

I simply disagree.

Fact #1: Income inequality has grown dramatically over the past several decades as the distribution of wealth and income has skewed more and more to the top.

Fact #2: Workers’ wages have not kept up with productivity.

Fact #3: Emergence of new businesses has declined in recent years. Given that rates of buybacks & dividends are going up, you’d think the rates of new businesses would be consistently going up, too, if shareholders were using capital from the buybacks to reinvest in new ventures.

Our solution may not be the only one or even the best one, but it was intended as a wake-up call to corporate America that they must be part of the solution, not the problem.

I welcome their feedback.