Legal Looting

Here is a powerful HBR video on a key economic problem which is little discussed but should be. In the US, where share buybacks are legal, profits are siphoned off by management to buy shares in the company they manage, instead of being reinvested. This is good for investors in the short term, and for managers who are typically paid more if share prices rise. But it slows innovation and economic growth, and has been a driver of rising inequality.