You know, there are several large corporations like Home Depot and others who have already announced that they will use the tax cuts to reinvest in their stock and drive up the price of their companies.
No, they aren't interested in raising wages or expanding to create more jobs.
Pretty naive, aren't you?
What's the impact to YOU if Home Depot increases its value?
(Time to demonstrate your profound understanding of macroeconomics)
Let's see if you know what the hell you're talking about (I got $10 on NO!)
Republicans said that the tax cuts were going to increase wages and create a whole bunch of more jobs because the companies would expand with all the increased savings in tax bills. But in reality, those companies are planning on increasing their stock value with the savings.
What is the impact to me personally? Probably nothing, but I hate it when politicians tell us one thing when in reality it's another.
See what I mean ??? Rudyard Kipling said "There is no greater sin than ignorance."
You have absolutely no idea whether this tax cut is "... going to increase wages and create a whole bunch of more jobs ...". You can whine, and complain, and demonstrate your ignorance, but the simple fact is you don't know.
Now, as for Home Depot .... it will affect YOU positively if they buy back some of their stock even if you own no HD stock, your 401(k) owns no HD stock, your mother owns no HD stock. You STILL are going to benefit.
Stick with me here ---- this is really simple, but I'll try to dumb it down some more.
You're right - one of the TEMPORARY effects of stock buyback is that there is a resultant increase in the overall value of each share of stock. Let's assume you have a company with 100 shares of stock, each worth $1. Your company is worth $100. If I buy back 10 shares - retire $10 of stockholder debt - I now have 90 shares STILL worth $100 ... That means each remaining share is now worth $1.10 (an increase of 10%). They have retired debt - no more interest to be paid (in the case of stock, that interest is called "dividends). Because your company now has less stockholder debt, you are much more attractive to a lender ... so, when you expand, you get a better interest rate, in addition to the increased in-hand investment capital (the money you didn't pay in dividends). A win-win.
Now, what does that have to do with YOU? Home Depot now has more money available for investment - at a lower rate of interest. Products become cheaper - expansion is greater - more jobs are created - and wages go up. Tax revenue is increased - and the potholes in front of your mobile home court get fixed. Wages become more competitive - so your income increases.
See how simple that was?
You should be cheering in the streets.