Comment Re:tools to artifically inflate GDP not working... (Score 1) 35
I think most of your points are correct, but you're wrong about this one
Legalizing corporate stock buybacks, Clinton presidency, when previously they were considered stock manipulation and illegal -> corporations buying back their own stock instead of producing more and innovating
Corporations sell stock to rapidly raise capital to fund large expansion and growth. But as others have said, endless growth is impossible. Eventually corporations start flailing around looking for growth opportunities in less and less viable endeavors. Stock buybacks are simply the opposite of selling stock. They are a completely logical way for a corporation to return the capital that was raised by stock sales when the corporation has grown to the point that it can't efficiently grow any larger.
The alternative is endless mergers, acquisitions, conglomerates and eventual divestitures as an oversized corporation desperately tries to get bigger when it has already filled the niche that it was originally good at.
In general a corporation can't just endlessly produce more and innovate more. Most will reach a point where they're as good as they're going to get and then decline as they lose focus on what they're good at by trying to outgrow their niche. At that point it's best to reduce the amount of outstanding stock as a way of returning the capital that they no longer need. And then if the world changes and they need more capital for a genuine new opportunity, they can sell new shares to raise capital.