Soggy in NOLA
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- Jul 31, 2009
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It's all Bush's fault.... haven't you heard?
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Whos Sitting On $1 Trillion In Cash
As economic recovery lags, companies see few reasons to spend
October 27, 2010 | By Paul Ausick
Its common knowledge that U.S. companies are sitting on a large pile of cash. Moodys estimates that pile to be worth $1 trillion. It must be a comfortable place to sit, too, because there seems little enthusiasm for whittling the size of the pile down.
Economic Recovery Lags And Companies Aren't Spending | InvestorPlace
Why aren't they investing capital which would also have the effect of hiring people?
Because they do not see a good investment opportunity, that's why.
These
Corporations know perfectly well the DEMAND side is too weak to invest in new hires, plant or equipment.
They see that the American consumer is SAVING at a rate of 6% now (three or four years agao it was 0%, FYI) and paying off debts.
We ARE trapped in that DELFATIONARY cycle, folks.
The Keynesians are RIGHT.
EVen the corporations understand that they cannot jump start this economy until something is done to create demand.
They're not fools, those captains of industry.
The SUPPLY SIDERS are, however
That is, they are fools if we assume the supply siders really want the economy to thrive, of course.
I don't think they do. Not yet, at least.
Not as long as Obama is in office, not until they once again control Congress.
So they keep pressing for tax breaks for billionaires who don't need it, and supporting continued foolish TRADE policies and generally doing what they can to keep this nation's economy on the rocks. They'd rather have the Dems lose than the nation win.
Yeah I'm talking about the GOP's current political strategy, right now.
That's right.
They apparently care more about their party then they do about the economy.
This is hard ball politics.
Supply side economics is merely Keynesian models turned inside out.Why aren't they investing capital which would also have the effect of hiring people?
Because they do not see a good investment opportunity, that's why.
These
Corporations know perfectly well the DEMAND side is too weak to invest in new hires, plant or equipment.
They see that the American consumer is SAVING at a rate of 6% now (three or four years agao it was 0%, FYI) and paying off debts.
We ARE trapped in that DELFATIONARY cycle, folks.
The Keynesians are RIGHT.
EVen the corporations understand that they cannot jump start this economy until something is done to create demand.
They're not fools, those captains of industry.
The SUPPLY SIDERS are, however
That is, they are fools if we assume the supply siders really want the economy to thrive, of course.
I don't think they do. Not yet, at least.
Not as long as Obama is in office, not until they once again control Congress.
So they keep pressing for tax breaks for billionaires who don't need it, and supporting continued foolish TRADE policies and generally doing what they can to keep this nation's economy on the rocks. They'd rather have the Dems lose than the nation win.
Yeah I'm talking about the GOP's current political strategy, right now.
That's right.
They apparently care more about their party then they do about the economy.
This is hard ball politics.
Obama kind of made it his problem when he promised that if the stimulus was passed unemployment would remain below 8%.
Remember Obama was only elected in the first place because the economy tanked on the eve of the election.
Live by the recession, die by the recession.
Corporations don't have a trillion dollars at their disposal. Much of that is overseas and won't be repatriated because they will get hit by a 35% tax rate.Whos Sitting On $1 Trillion In Cash
As economic recovery lags, companies see few reasons to spend
October 27, 2010 | By Paul Ausick
Its common knowledge that U.S. companies are sitting on a large pile of cash. Moodys estimates that pile to be worth $1 trillion. It must be a comfortable place to sit, too, because there seems little enthusiasm for whittling the size of the pile down.
Economic Recovery Lags And Companies Aren't Spending | InvestorPlace
Obama kind of made it his problem when he promised that if the stimulus was passed unemployment would remain below 8%.
It isn't.So how is employment an Obama problem?
UNemployment is another story for the Bastard in Chief.