We can stop tech execs from pocketing billions in CHIPS subsidies. Here’s how.

The following advertisement from Inequality.org has been sent to you via Mother Jones' email list. Mother Jones is a nonprofit, and most of our budget comes from readers like you, but revenue from advertisers helps us produce more of the hard-hitting journalism you expect. We never disclose your information to an advertiser. Mother Jones does not endorse any candidate, political organization, commercial product, or service, and the views expressed in this email do not constitute any endorsement or recommendation by Mother Jones. This email is wonky but important -- and your signature could make a big difference. [Logo for Inequality.org]( [An illustration in worker-propaganda style with hands holding various tools beneath a centered, stylized microchip.]( Dear Mother Jones Reader, The CHIPS Act will disburse billions to semiconductor manufacturers who bring jobs back to the U.S. But some of the tech companies lining up for these subsidies are also spending billions on stock buybacks. It’s a blatant, cynical move to enrich their own executives. And it’s a waste of public dollars. Stock buybacks boost stock prices -- while hurting worker wages, R&D, and other productive investments. We can stop this wasteful self-dealing -- but we’ve got to speak up and demand strict enforcement. [Add your name to the Inequality.org petition, telling the Department of Commerce: Forbid CHIPS recipients from stock buybacks.]( Public investment dollars must be used for public good, rather than just enriching executives and stockholders. [Add your name]( President Biden championed the CHIPS Act, which passed in 2022, to "invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind." But right now, it sure looks like that money is in danger of being siphoned off elsewhere instead. Stock buybacks were largely considered unlawful stock market manipulation until 1982. After the 2017 corporate tax cuts, buyback spending exploded. S&P 500 firms alone spent $806 billion on buybacks in that year. The semiconductor industry has been a major exploiter of stock buybacks. In the last four years, the dozen chipmakers now vying for CHIPS grants spent more than $41 billion combined on stock buybacks -- enough to provide 300,000 employees a $27,541 bonus every year for five years. To maximize the benefits of this program, the Department of Commerce should take advantage of its statutory authority to fully ban CHIPS grant recipients from engaging in stock buybacks as a condition of their awards. Agreements should also include strong accountability measures if grant recipients engage in stock buybacks in violation of the ban. We can make this happen -- but it’ll take public outcry and pressure. [Add your name to our petition to the Department of Commerce today.]( Thanks for taking action with us, Chuck Collins, for the Inequality.org team All data sourced from Inequality.org research: [Maximizing CHIPS Subsidy Benefits for Workers — Not CEOs](, Sarah Anderson and Natalia Renta, July 15, 2024. Inequality.org is your portal into the world of inequality online — and ongoing efforts to leave our planet a more equal place. [Learn more and read all the latest at Inequality.org]( Contact us at inequality@ips-dc.org Inequality.org is a program of the Institute for Policy Studies 1301 Connecticut Avenue NW Washington, DC 20036 [Facebook]( [Twitter]( [Mother Jones]( Mother Jones and its nonprofit publisher, The Center for Investigative Reporting, do not endorse any political candidate, political organization, commercial product, process, or service, and the views expressed in this communication do not constitute an endorsement, recommendation, or favoring by Mother Jones. This message was sent to {EMAIL}. To change the messages you receive from us, you can [edit your email preferences]( or [unsubscribe from all mailings.]( For advertising opportunities see our online [media kit.]( Were you forwarded this email? [Sign up for Mother Jones' newsletters today.]( [www.MotherJones.com]( PO Box 8539, Big Sandy, TX 75755