Just ban stock buybacks again

Prior to 1982, stock buybacks were almost unheard of — and the economy did just fine

Chuck Schumer and Bernie Sanders.
(Image credit: Illustrated | Mark Wilson/Getty Images, JOHANNES EISELE/AFP/Getty Images)

Senate Minority Leader Chuck Schumer (D-N.Y.) and Sen. Bernie Sanders (I-Vt.) want to clamp down on stock buybacks. This practice, worth a record $1.1 trillion in 2018, is when publicly traded companies buy their own shares from Wall Street traders. Schumer and Sanders are certainly right that this is a huge problem. But their solution — tightening rules for when companies can do it — isn't enough.

The best fix is to just prohibit stock buybacks, period.

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