Trumps: White Angry Middleclass

[bae]

Corporations doing stock buybacks are the exact opposite of hoarding cash.

They have excess cash that they do not believe they can effectively use to expand the business or go into new ventures. So they send the cash back to the investors, either by direct dividends, or by doing a stock buyback which increases the value of the remaining shares (equity per share) by the same amount(modulo any tax consequence difference between long term capital gains/dividend treatment.)

A corporation hoarding cash would look more like keeping billions of dollars sitting in banks accounts above-and-beyond what is needed for working capital and expansion needs, while refusing to pay out that money in dividends or by buying back shares.

[Williamsmith]

Corporations doing stock buybacks are the exact opposite of hoarding cash.

They have excess cash that they do not believe they can effectively use to expand the business or go into new ventures. So they send the cash back to the investors, either by direct dividends, or by doing a stock buyback which increases the value of the remaining shares (equity per share) by the same amount(modulo any tax consequence difference between long term capital gains/dividend treatment.)

A corporation hoarding cash would look more like keeping billions of dollars sitting in banks accounts above-and-beyond what is needed for working capital and expansion needs, while refusing to pay out that money in dividends or by buying back shares.

Bae I guess it's who you want to believe reporting on what is really happening. Yes stock buybacks recycle the money through investors but what I read reports stock buybacks are not robust. Companies ARE sitting on piles of cash because they don't want to invest it in their companies expansion or infrastructure. This to the tune of a trillion or so dollars. The energy sector is driving this hoarding. In Pennsylvania we have a booming latent gas fracking business capped and waiting to be produced and transported. The wells have been prepared. If oil prices rise again it will trigger a boom in Pennsylvania that will rival Texas. But what I read leads me to believe companies have more money than they know what to do with. Their infrastructure is crumbling because they fear for the future of their business. But soon expenditures will be forced but until then workers are forced to deal with machinery that is more reminiscent of Cuba than the USA.

[gimmethesimplelife]

Thank you for your concern. I work in a fairly specialized insurance, information security (think Target data breach). At this time it's a new enough field that I won't be automated out of a job any time soon. People who work on more mainstream insurance, like property of general liability, should be concerned. Those are the divisions where our 'field underwriters' are just glorified salespeople. The ones who are generally extroverted will probably do fine, but the rest... Plan B is retirement. Although I'm relatively young (your age) I'm roughly 2/3 of the way towards my retirement savings goal. My main concern, like so many people, is retirement health insurance prior to aging in to Medicare.

The scary thing is that there are SOOOO many jobs like mine that are vulnerable to automation and outsourcing. I wouldn't want to be 25 today and trying to figure out what career to be going into.

Yes. Anything that involves standardized procedures is vulnerable.....think credit analyst,, loan officer, and thanks to algorhythms, even financial advisors. For those who travel internationally, it is partly now algorhythms checking your prior travel patterns that decides who gets the thrill of a secondary inspection. Even at my lower end....tablets are beginning to reduce server counts at restaurants and with labor cost increases coming this is only going to spread to more restaurants. It is scary out there. I am really dreading self driving vehicles..just think of all the lost jobs under that umbrella....


What do those people do then? As to your insurance concern, my guess is that more people will leave the US for residency in countries with less expensive health care.....they may not have any other choice due to structural changes in the US workplace/non-affordable health care. I wouldn't be surprised if there were an opportunity for me in the future in an advisory role of some sort helping people leave the US for affordable health care/much further stretch of their savings, provided that the US dollar holds its value.

Definitely major change is not far off,,,,,change akin to strapping yourself into one of the world's great roller coasters. Rob

[Alan]

I wouldn't be surprised if there were an opportunity for me in the future in an advisory role of some sort helping people leave the US for affordable health care/much further stretch of their savings, provided that the US dollar holds its value.

How much would you charge people to advise them to go to Mexico? I guess they would need a valid passport, so you could tell them about that as well.

[IshbelRobertson]

From personal experience I don't think most citizens of whatever country would ever wish to leave home. I have lived around the globe, but I am a Scot and will die one. I suspect most Americans will feel like that. My country, right or wrong is a powerful tie.

[gimmethesimplelife]

From personal experience I don't think most citizens of whatever country would ever wish to leave home. I have lived around the globe, but I am a Scot and will die one. I suspect most Americans will feel like that. My country, right or wrong is a powerful tie.

The incentive to quit working working years sooner and have access to high quality affordable health care is a very powerful morivator, too. Some people feel the way you do, and that's fine.....but not everyone does and some people will flee to improve the quality of their lives. Count me in the latter camp. Rob

[gimmethesimplelife]

[QUOTE=Alan;243561]How much would you charge people to advise them to go to Mexico? I guess they would need a valid passport, so you could tell them about that as well. [/QUOTE
I am current on the permanent residency requirements and overall healthcare costs of all European countries, all Central and South American coumtries, and most Asian cohntries. I have put a great amount of time into this research and I believe there will be a larger than present and not too far off market for this knowledge. If I am correct remains to be seen.....my point is that I know a lot about this topic and not just about Mexico.....I only refer to Mexico so often as it's been my escape valve/quick and easy method to access basic human rights I wasn't worth in America. Certainly there are many other low cost countries worthy offering permanent residency and much lower costs and a way out of unending relentless struggle to make those at the top yey more wealthy. Rob

[Alan]

I only refer to Mexico so often as it's been my escape valve/quick and easy method to access basic human rights I wasn't worth in America.

You have the same worth as anyone else, you just refuse to believe it.

[gimmethesimplelife]

You have the same worth as anyone else, you just refuse to believe it.

Try on not having access to health or dental care for years in the US and then let's talk. You might well talk very differently then. Rob

[Alan]

Try on not having access to health or dental care for years in the US and then let's talk. You might well talk very differently then. Rob

You're confusing 'access' with free access. We're no different.