June 1, 2014 Leave a comment
OMAHA, NE – American corporations continue to lie about raising the wages of their employees, claiming it will raise prices and cause all kinds of problems for themselves and the economy. These same corporations spend millions of dollars to tell you that they do not have the money to give badly needed raises. They spend millions of dollars on political campaigns to make sure elected politicians block legislation meant to raise the minimum wage. Yet, one such company, McDonald’s is buying back $20 million in stocks to further enrich their already rich stockholders. That’s enough money to give every wage employee a $5 dollar an hour raise. See also – http://www.bloomberg.com/news/2014-05-28/mcdonald-s-plans-up-to-20-billion-in-buybacks-dividends.html
McDonald’s isn’t the only corporation spending massive amounts of money on stock buybacks. WalMart is guilty, too. In 2013, WalMart announced a plan to buy back over $15 billion worth of its stocks. Mother Jones reports,”If WalMart instead spent that money on wages, it could give each of its 1.3 million low-paid US employees a $5.83 per hour raise—enough to make sure that all of its 1.3 million workers be paid a wage of at least $25,000 a year for full-time work.” See also – http://www.motherjones.com/mojo/2013/11/how-walmart-could-pay-decent-wage-without-raising-prices and http://qz.com/92216/wal-mart-stock-buyback-annual-meeting
There are so many American companies engaged in buy backs, what I the Great American Cash Hoard. According to data compiled by Bloomberg on about 2,300 non financial companies in the Russell 3000 stock index, U.S. corporations are starting to put some of their $2 trillion in cash and marketable securities to work. According to data from TrimTabs Investment Research Inc, announced corporate buying — a combination of new cash takeovers and new stock buybacks — rose to a five-month high of $80.5 billion in April. That month’s figure included a $30 billion repurchase-plan boost from Apple. See also – http://www.bloomberg.com/news/2014-05-28/mcdonald-s-plans-up-to-20-billion-in-buybacks-dividends.html
With these actions, corporate America disproves the Republican theory of trickle down. It is time to pass laws that make sure middle class and poor Americans get a fair share of the wealth they have help create. Laws from minimum wage increase or better yet a living wage. Laws to make sure that some of that money used to buy back stocks goes to the corporations wage labor employees. And perhaps it is time we talk about LABORISM. Laborism is a free market that puts labor before capital, the way it should be.