Ralph Nader Radio Hour

A “license to loot” is what our guest, economist William Lazonick, calls stock buybacks. Until the Reagan Revolution, stock buybacks were considered market manipulation and at the very least are an unproductive use of profits used only to pump up the stock price and enrich upper management, while neglecting workers’ wages, capital expansion, and innovation. Ralph and Professor Lazonick break it all down for you.William Lazonick is Professor Emeritus of Economics at the University of Massachusetts Lowell. His recent work includes Predatory Value Extraction: How the Looting of the Business Corporation Became the US Norm and How Sustainable Prosperity Can Be Restored,  and the forthcoming book Investing in Innovation: Confronting Predatory Value Extraction in the U.S. Corporation.The ideology that enables buybacks, that makes a lot of people including economists say, “Oh, they’re just fine. The money’s just going to the economy,” is what I call the myth of the market economy—the way in which we get capital forma