[dcolkitt]

Well, one thing to note is that money returned in buybacks doesn't just get thrown in a big pit. It has to be reinvested somewhere else. So, while it may not help the employees of the company paying the dividends, it certainly helps the employees of the company receiving new investment.

I think you did adroitly mention down thread that there are labor market frictions to consider. And I definitely agree with that. Obviously stable employment is definitely one social consideration. And certainly long-lived companies make for more stable labor markets.

But all in all, I still think that overall most people would prefer faster rather than slower turnover among large firms. Younger companies (as in those founded more recently) tend to be more innovative, deliver better customer service, have more satisfied employees, engage in less lobbying, and have fewer environmental and safety issues.