CANADALAND #914 Stock Buybacks: How Grocers Eat Themselves

Jan 3, 2024

William Lazonick, professor emeritus of economics at University of Massachusetts discusses the controversy surrounding stock buybacks in the grocery sector, focusing on Canada's big grocery chains and their profit margins. He highlights the significant size and expansion of stock buyback programs of Loblaws, Metro, and Sobs, amounting to over $3 billion. The podcast also delves into the struggles of grocery workers who are demanding fair wages amidst high profits. It explores the legality, profitability, and history of stock buybacks, as well as their impact on economic growth, employees, and customers. The origins of the concept of maximizing shareholder value and the self-serving nature of buybacks are also examined. Finally, the chapter analyzes tax policies and makes a plea for listener support.