The surge in stock buybacks in the US has sparked a high-stakes debate about what corporations can and should do with surpluses they have generated. It is a topic that raises fundamental questions about the role of the public and private sectors in securing inclusive growth patterns.

The debate kicked into high gear recently when US Senators Bernie Sanders and Chuck Schumer wrote an article arguing that corporations should be investing more in employees and the community, rather than buying back stock. They then declared their intention to introduce legislation that would prohibit corporations from buying back their own stock unless they invest in workers first, say, by raising their minimum wage to $15 per hour or offering paid sick leave.