Earlier quoted context omitted.
How do we fix this loop in companies? It is a very serious problem for humanity’s future. It exists in government too. How do we reward long-term thinking and decisions?
A lot of the most egregious, society-warping behavior by monstrous-sized companies is due to paying execs with stock. It was a salary tax avoidance maneuver that started in the 80's, and has led to 1) absolute fixation on short-term stock price, and 2) (also to that end) stock buybacks. Many of our largest corporations have used recent stimulus moneys to fund buybacks like it was sex or something. All it has been is…
Issuing debt to buy back shares is a strategy that works great when interest rates are very very low.
But when the money supply is scarce, only so much leverage can exist, so issuing debt to buy shares would be far far riskier.