Watercooler – Corporations Are Sitting On Cash Instead Of Creating Jobs
Corporate America’s cash pile has hit its highest level in half a century:
Rather than pouring their money into building plants or hiring workers, nonfinancial companies in the U.S. were sitting on $1.93 trillion in cash and other liquid assets at the end of September, up from $1.8 trillion at the end of June, the Federal Reserve said Thursday. Cash accounted for 7.4% of the companies’ total assets—the largest share since 1959. The cash buildup shows the deep caution many companies feel about investing in expansion while the economic recovery remains painfully slow and high unemployment and battered household finances continue to limit consumers’ ability to spend.
Which begs the question: If wealthy companies aren’t spending their money and creating jobs, what makes conservatives corporatists like McConnell and Obama think that wealthy individuals are going to open their wallets when they get a tax break?
Trickle-down doesn’t work. Never has. Never will.
What’s on your mind tonight?