News for hackers. Stuff that matters.

A comment on Companies Use Borrowed Billions to Buy Back Stock, Not to Invest. Parent comment

Re:Companies Use Borrowed Billions to Buy Back Stock, Not to... by danmaz74 on Saturday August 10, 2019 @07:36PM (#20665216)
Trickle down is associated with supply side economics; giving money for people to spend means increasing aggregate demand, which is the opposite.
[ Parent | on HN ]
Re:Companies Use Borrowed Billions to Buy Back Stock, Not to... by perl4ever on Sunday August 11, 2019 @03:32PM (#20669945)
"Giving money for people to spend", what does that mean though? You write a note on it? "Plz spend on chzburger, kthxbye"

Or is it like you use body language? Giving money for people to spend is done like this, while giving money for people to save is done like this.

Every time someone buys an investment, they're buying it from someone who is cashing out, quite possibly to buy a cheeseburger. It makes no sense to call this a "trickle", of course, because it's not a small fraction of the money.

[ Parent | on HN ]