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Wouldn't the forced reinvestment of cash back into the economy drive up inflation? Also, aren't the Corp's hoarding cash because interest rates are artificiall
by cgosnell 11y ago
Wouldn't the forced reinvestment of cash back into the economy drive up inflation?
Also, aren't the Corp's hoarding cash because interest rates are artificially low?
Is the 'cash' really paper money or something like hard currency (gold coins, etc...). In that case 'hoarding the hard currency is not really destroying it, and when the investment options include tying up the money for some time with only a small return on investment, maybe hoarding is the best answer.
- tw04 11y agoCorporations are hoarding cash because last time they did so the government caved and gave them a "tax holiday". They're doing it again because they believe the government is unwilling to take any actions to get at the money, and will eventually give them another "tax holiday".