Re:Why Are Corporations Hoarding Trillions?
by sandworm101 on Thursday January 21, 2016 @05:34PM
(#10949039)
Then it is time yet again to invent new ways for Americans to consume.
An economy turns not on capital but the movement of capital from one place to another (ie trade). Atm the money is with corporations. They don't actually want it. They would rather have customers buying their products than money sitting in a box. The role of government in resolving this impasse is to somehow make that parked money move again. Either take it via taxes (very difficult as the US does not generally tax assets) or get the corporations to spent it willingly.
I'd vote for a rule that would mandate dividend payouts by corporations that hoard money. Define a fixed amount that is acceptable, say 25% of net worth, and any liquid assets above that number must be paid as dividends. That will move a pile of money from corporations to wealthy stockholders, which in turn pay taxes and hopefully will spend some on products. Yes, it is a "trickle-down" approach, but I think that is the only approach the US electorate can stomach these days. Or, to avoid paying said dividends, corporations would invest in/hire people who would then pay taxes and otherwise keep the money flowing through the economy.
An economy turns not on capital but the movement of capital from one place to another (ie trade). Atm the money is with corporations. They don't actually want it. They would rather have customers buying their products than money sitting in a box. The role of government in resolving this impasse is to somehow make that parked money move again. Either take it via taxes (very difficult as the US does not generally tax assets) or get the corporations to spent it willingly.
I'd vote for a rule that would mandate dividend payouts by corporations that hoard money. Define a fixed amount that is acceptable, say 25% of net worth, and any liquid assets above that number must be paid as dividends. That will move a pile of money from corporations to wealthy stockholders, which in turn pay taxes and hopefully will spend some on products. Yes, it is a "trickle-down" approach, but I think that is the only approach the US electorate can stomach these days. Or, to avoid paying said dividends, corporations would invest in/hire people who would then pay taxes and otherwise keep the money flowing through the economy.