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by vannevar
5254 days ago
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And yet that $1.9B is only a fraction of Google's cash reserves. And Apple's is nearly $100B. Corporations are hoarding cash at record levels. As of last January, the top 17 US corporate cash reserves amounted to nearly half a trillion dollars. It's not unreasonable to speculate that corporate hoarding is contributing to our flat economy, when you consider how that cash would be multiplied if it were turned loose. Companies are holding onto cash because they're afraid of slow growth because of high unemployment, which becomes a self-fulfilling prophecy when they don't invest in new business and hire more people. It also casts doubt on claims that raising corporate taxes will hurt the economy. If companies aren't spending any of the cash they already have, how will giving them more to stuff under the mattress help? |
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Until you dig deeper and find out that US corporations are accumulating debt at the fastest pace in world history. Their cash is required to continue to offset the massive debt being acquired. If interest rates go up at all in the next ten years, bankruptcies will skyrocket. A lot of companies are being irresponsible with debt right now because they can issue it at hyper low rates.