Enshittification author explains why stock buybacks are such a scam

3 days ago

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Stock buybacks are criticized as a form of stock manipulation that enriches billionaires without adding real value to companies.
Companies use cash reserves to buy back their own shares, reducing supply and artificially increasing share prices.
Stock buybacks were illegal until 1982 when Reagan's SEC legalized them, benefiting corporate executives at the expense of company health.
The practice misallocates capital, making companies less valuable while increasing share prices, distorting market signals.
The richest 10% of households own over 93% of stocks, meaning buybacks primarily benefit the wealthy.
Trump's policies have enabled $1.1 trillion in stock buybacks in 2025, further concentrating wealth and power among oligarchs.
Finance sector scams like wash trading and stock buybacks undermine the efficiency and fairness of markets.
The article links stock buybacks to broader economic and political issues, including wealth inequality and corporate power.

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