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I think Apple reveals the upper limit of what Capitalism can produce. Worth 1.5 trillion dollars, with hundreds of billions in the bank, and what are they doin

I think Apple reveals the upper limit of what Capitalism can produce. Worth 1.5 trillion dollars, with hundreds of billions in the bank, and what are they doing with it? Stock buy-backs and dividends? They have tremendous margins, and mostly high quality products, but they can't or won't leverage their profits to either lower costs, or raise quality on their bad components. So they're winning in the profit category, but can't seem to translate that into winning elsewhere. More money seems to be only so useful, and they've crossed that point.

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PaulStatezny 6y ago
I don't understand why you're being downvoted. I think this is an interesting point. They're not cycling that money back into the economy, they're holding onto it. Which, in general, is considered bad for the economy, no?
- chooseaname 6y ago
  > They're not cycling that money back into the economy, they're holding onto it. I'm no economist, but this seems counter to what we've been told since Reagan.
- mcphage 6y ago
  > They're not cycling that money back into the economy, they're holding onto it. I definitely agree with you here, but my point was slightly different—they can't even use that money to improve their products. They're successful beyond compare but that doesn't even do them much good, let alone anyone else.
- perl4ever 6y ago
  Their money doesn't represent resources sitting idle. The whole point of the financial system is that there isn't $X trillion idle. The securities they own are claims on stuff other people are using. Talking about cycling it back into the economy is nonsense, because it isn't, can't be, taken out.
  - mcphage 6y ago
    > because it isn't, can't be, taken out Well, they do when they issue stock buybacks and dividends.
    - perl4ever 6y ago
      How can that be? At the time the money is paid, nobody knows what the recipient will use it for. So how can anyone be taking any specific material stuff "out" of the economy? Apple doesn't pay dividends in, say, eggplants. If you buy some with your dividend, they haven't been taken out of the economy any more than anything that's consumed.
xsmasher 6y ago
"Stock buy-backs and dividends" is what you are supposed to do when you have more cash than you can reasonably use. Give it back to the shareholders so they can try their luck somewhere else.
klipklop 6y ago
Dutch East India Company anyone?

deleted 6y ago

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PaulStatezny 6y ago

I don't understand why you're being downvoted. I think this is an interesting point. They're not cycling that money back into the economy, they're holding onto it. Which, in general, is considered bad for the economy, no?

chooseaname 6y ago
> They're not cycling that money back into the economy, they're holding onto it. I'm no economist, but this seems counter to what we've been told since Reagan.
mcphage 6y ago
> They're not cycling that money back into the economy, they're holding onto it. I definitely agree with you here, but my point was slightly different—they can't even use that money to improve their products. They're successful beyond compare but that doesn't even do them much good, let alone anyone else.
perl4ever 6y ago
Their money doesn't represent resources sitting idle. The whole point of the financial system is that there isn't $X trillion idle. The securities they own are claims on stuff other people are using. Talking about cycling it back into the economy is nonsense, because it isn't, can't be, taken out.
- mcphage 6y ago
  > because it isn't, can't be, taken out Well, they do when they issue stock buybacks and dividends.
  - perl4ever 6y ago
    How can that be? At the time the money is paid, nobody knows what the recipient will use it for. So how can anyone be taking any specific material stuff "out" of the economy? Apple doesn't pay dividends in, say, eggplants. If you buy some with your dividend, they haven't been taken out of the economy any more than anything that's consumed.

xsmasher 6y ago

"Stock buy-backs and dividends" is what you are supposed to do when you have more cash than you can reasonably use. Give it back to the shareholders so they can try their luck somewhere else.

klipklop 6y ago

Dutch East India Company anyone?