Common Dreams has posted The Inside Story of How Wall Street Fleeced GM Autoworkers and Taxpayers. Many members, particularly those with post – 2009 seniority are not aware of the reasons behind the three less-than-awesome contracts prior to this years record agreement. This is just one facet of that corporate disaster but the poison of stock buybacks continues to this day. Folks that want to be leaders in the future should spend some time with this article.
The strike is shining a bright light on a type of financial insanity that has gripped our economy. Stock buybacks have become the main goal in life for corporate executives and activist stock-sellers like Harry J. Wilson and his hedge fund raiders. Their looting adds nothing of value to their companies, yet this sickness is spreading. In 1982 only 2 percent of corporate profits were used for stock buybacks. Now, nearly 70 percent of all corporate profits go to stock buybacks instead of research and development, environmental controls, and worker health and safety. And certainly not to provide job security nor livable wages. Increasingly the business of American business is not to make things and provide services, but instead to create stock buybacks to benefit top executives and looting stock-sellers.
( graphic via ClipartMax.com)
