Lazonick: Stock Buy-Backs have Killed the Middle Class

Rule 10B-18, established by the SEC in 1982, was to limit liabilities of companies which buy back some of their stock, limit from charges of market manipulation. According to Professor Emeritus of Economics at the University of Massachusetts, William Lazonick, stock buy backs have killed the middle class by allowing company execs to amass fortunes while not re-investing profits in the company or sharing the profits with their employees. Senator Chuck Shumer calls buy backs “self serving” and Sen. Baldwin has been trying to rescind Rule 10B-18 since 2018, but few seem to have the will to correct this issue.

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