What are stock buybacks? And why do they matter? The dramatic increase in stock buybacks of late points to a larger story about the problems with our economy, but there are several reasons why stock buybacks alone are troubling. In “Stock Buybacks: Driving A High-Profit, Low-Wage Economy“, Roosevelt Senior Economist and Policy Counsel Lenore Palladino defines stock buybacks, examines the rising prevalence and economic consequences of this practice, and outlines policy solutions to address this fast-growing trend.

There are several steps policymakers can and should take to limit the harm of this extractive corporate behavior that jeopardizes workers, consumers, and broad-based economic growth. Ending the dominance of the “shareholder first” ideology within America’s largest public corporations—our country’s biggest employers—is necessary in order to build sustainable prosperity for all in the 21st century.