The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

Reprinted with permission from Shareblue.com

 

Despite the promise from Republicans that their tax scam would dramatically grow the economy, more than 1,500 Californians are set to lose their jobs with technology company Qualcomm.

One group that doesn’t have to worry is Wall Street investors, as Qualcomm also announced a massive stock buyback initiative. In other words, rich corporate investors are set to profit, while workers in San Diego and San Jose are out of luck.

When the Republicans passed their tax scam, it was sold as “rocket fuel” for the economy.

Two California Republicans who voted for the bill — Reps. Mimi Walters and Steve Knight — echoed those promises. Walters boasted the tax bill would “generate significant economic growth.” Knight declared it would be “a tax code that puts American families first.”

Just a couple months after the bill passed, Speaker Paul Ryan infamously boasted about a high school secretary whose paycheck had increased by $1.50 a week as evidence of the tax scam’s supposed success.

But the empty rhetoric means little to workers who will soon receive a pink slip. The layoffs — 289 in San Jose, and 1,231 in San Diego — are part of an effort by the multinational company to trim $1 billion in costs, according to CNN.

When the bill was moving through Congress, critics warned that corporations would not use the massive kickbacks from the bill to invest in workers, but would instead use the cash to enrich shareholders.

“Democratic lawmakers who have been critical of the GOP bill have claimed it would be used for such things as share buybacks to enrich shareholders, rather than for capital expenditures or improving worker pay,” CNBC noted at the time.

Qualcomm proved the critics right.

Not even a month after announcing the massive layoffs, Qualcomm announced $10 billion stock buyback plan. In its announcement, the priority of the company could not be clearer: “Consistent with our commitment to return capital to our stockholders, we are pleased that our Board has approved a new stock repurchase authorization.”

Stock buybacks are used by companies to boost the price of their stock, thus benefitting wealthy investors and executives with lucrative stock options. Rather than invest in workers, Qualcomm joins other companies in lining the pockets of investors.

“Share buybacks in 2018 have averaged $4.8 billion a day, double the pace for the same period last year, according to market data firm TrimTabs,” reports CNBC. Some pharmaceutical companies are increasing the prices of their medicine while at the same time lavishing Wall Street investors with stock buybacks.

Republicans made big promises around the tax scam, but the reality doesn’t match the hype. Job growth isn’t booming and wages continue to grow at the same rate as before the bill became law.

Wealthy corporations and rich Wall Street investors are growing even more wealthy. For the rest of America, the only thing growing is our national deficit — to the tune of more than $1 trillion.

CNN is right: “Shareholders, not workers, are far bigger direct winners from the Tax Cuts and Jobs Act of 2017.”

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Reprinted with permission from Alternet

Senator Susan Collins (R-ME) is under mounting criticism for refusing to support a Democratic bill that would make access to abortion the law of the land, as the U.S. Supreme Court, experts believe, prepares to reverse its historic 1973 ruling in Roe v. Wade.

Senator Collins, who repeatedly claims to be pro-choice, is being criticized after years of supporting then-President Donald Trump's judicial nominees at every level of the federal judiciary, including two of his three Supreme Court picks.

Keep reading... Show less

French President Emanuel Macron, left, and US President Joe Biden

Reprinted with permission from Creators

About France and its submarines: Australia's decision to cancel a $60 billion contract to buy them and purchase American nuclear subs instead had to hurt. In response, France's foreign minister called the U.S.-backed move a "stab in the back," and President Emmanuel Macron recalled his ambassadors from both Washington and Canberra.

The backstory should take precedence over the drama flowing from the rift between America and its oldest ally. It centers on a growing alarm at Chinese aggression in the Pacific and how seriously the U.S. and its Pacific allies are taking it.

Keep reading... Show less
x
{{ post.roar_specific_data.api_data.analytics }}