For the five years previous to the Trump corporate tax cuts, buybacks and deals outstripped wage increases $4.9 trillion to $2.3 trillion. The pace increased in the first quarter to a projected five-year level of $6.1 trillion to $2.6 trillion, meaning the pace of stock buybacks and deals is up 24% but only 13% for wage increases. The difference between those two rates of increase is nearly 85%.
The CNBC story, "Tax cut riches have gone to execs and investors over workers by nearly 3-to-1 margin", is here. The headline exaggerates the 1Q2018 ratio of buybacks of $305 billion to wage increases of $131 billion, which is actually 2.3:1.
Liberal math, but still. The Trump tax cuts are going to top managers and stockholders overwhelmingly compared with the masses of ordinary wage earners.
This explains the resilience of the stock market indices near their record highs. The tax cut cash is flowing into stocks, boosting and supporting prices.
