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More to the point, this should set supply-side economics on a bonfire. The idea of cutting taxes to stimulate job creation is ludicrous when corporations are al
by beat 10y ago
More to the point, this should set supply-side economics on a bonfire. The idea of cutting taxes to stimulate job creation is ludicrous when corporations are already swimming in cash. The problem isn't insufficient capital - it's risk aversion and a lack of good places to put the cash already in the system.
Supply-side made a lot of sense in the Reagan era, when we had near-runaway inflation and a massive cash crunch, so there was no capital to invest. Now we need things to invest the excess capital in. We need demand. That comes from wages, and no individual company is motivated to raise wages. Tragedy of the commons, in a sense.
- coredog64 10y agoThat money is parked overseas. Apple can't use the money for designers in California to create the next version of the iPad. Maybe that's good news for Irish designers. If we're lucky, the next iPad ought to have little stickers all over it proudly proclaiming "Designed by Apple in Ireland, Assembled in China".
- pg314 10y agoThey could borrow in the US (and they do to finance share buybacks and dividends), while they wait for the next tax holiday [1] to repatriate that overseas money at a low tax rate. The next tax holiday will probably next year. [1] https://en.wikipedia.org/wiki/Repatriation_tax_holiday https://en.wikipedia.org/wiki/Repatriation_tax_holiday