http://nymag.com/daily/intelligencer/2018/07/corporations-are-investing-in-stock-buybacks-that-dont-pay.html
"In the first six months after the Trump tax cuts were passed, corporate investment in equipment declined, America’s projected long-term deficit swelled by nearly $2 trillion, and wages for the vast majority of American workers fell on an inflation-adjusted basis. And there is no sign that reality will start comporting with the GOP’s predictions any time soon. As the Washington Post’s Heather Long notes, Morgan Stanley reported last month that America’s businesses are planning less future capital spending now than they were a few months ago. And that finding is bolstered by a recent survey of 393 businesses from the U.S. Chamber of Commerce and the audit firm RSM, which found that only 38 percent of those firms plan to increase investment over the next three years. Instead of channeling their profits into productive investment, S&P 500 companies are on pace to plow a record-setting $800 billion into buying back their own stocks. The point of such “stock buybacks” is to increase a firm’s share price (and thus, in many cases, the performance-based pay of its CEO) by reducing the supply of shares on the market."
