Stock Buybacks As Economic Stimulus

  • One of the criticisms of the recent tax cut is that most of the corporate tax cuts are likely to go to share buybacks.
  • Rather than trying to deny that, some defenders argue that these buybacks are good for the economy.
  • While buybacks are certainly good for shareholders, we’ll investigate whether they can be considered an adequate form of economic stimulus as well.

Source: Stock Buybacks As Economic Stimulus | Seeking Alpha