Friday’s Motley Fool had an eye-opening article about $35.5 billion of stock buybacks recently announced by Big Banks.
That’s $35.5 billion of profits being “returned to stockholders” rather than being used to pay bank employees a living wage. Yes, these days almost one-third of bank tellers receive public assistance (including food stamps, Medicaid, welfare, EITC).
Yes, that’s our tax money at work: “State and federal governments pay nearly $900 million each year to support bank tellers on these programs.” At the same time Big Banks are “returning” billions upon billions to “stockholders” – including the very same corporate insiders who decide how much money will be spent on buybacks, and how much on wages. (Wondering how many shares these “insiders” own? Click on these links, then scroll down: Citigroup; Bank of America; JP Morgan.)
That’s $35.5 billion going up the economic ladder, rather than being used to pay workers a living wage.
And that’s just from nine banks. Goldman Sachs has predicted that – this year alone – US corporations will spend $707 billion buying back their own stocks.
That’s money that could be used to create jobs. Or pay employees a living wage. Or restore the health insurance and pension benefits that have been stripped away during the past 20 years. Or invest in new factories, or research and development.
Or, gosh. It could wipe out the entire federal deficit. If only corporations were still paying taxes at the same rates they paid in the 1950s, 60s and 70s… rather than “returning” all those billions to investors.
Read more about stock buybacks here.
Note to readers: you may have noticed, it’s been a while since I’ve blogged here at NH Labor News… and that’s because I’m now working for StampStampede.org. The Stampede is tens of thousands of Americans legally stamping messages on our nation’s currency to #GetMoneyOut of Politics. As more and more stamped money spreads, so will the movement to amend the Constitution and overturn Citizens United.
You can get your own stamp online at www.stampstampede.org. Or, if you’re a member of CWA, you can get a stamp from your LPAT coordinator. The average stamped bill is seen by 875 people – which makes stamping a highly-effective way to get the message out about how money in politics is corrupting our government.
Need motivation to stamp? Just think about Citigroup, which spends millions of dollars each year on lobbying, and millions more on political contributions (to both parties)… and, oh, wait! There are also 27 members of Congress who themselves own stock in Citigroup. Now, think about last December’s Cromnibus legislation, which included a provision written by Citigroup lobbyists leaving taxpayers on the hook for another Wall Street bailout.
And now… they’re “returning” $7.8 billion of profits to shareholders (rather than, say, rehiring some of those 50,000 workers who were laid off during the last Wall Street meltdown).
It’s time to #GetMoneyOut of politics and take back our government.