4 ms·
The problem is that there isn't enough investment despite the corporations having huge piles of cash. The billions in stock buy backs in the US are a testament
by jcfrei 5y ago
The problem is that there isn't enough investment despite the corporations having huge piles of cash. The billions in stock buy backs in the US are a testament to this. Your argument is valid in a world where savings are scarce but we have a global savings glut.
- bko 5y ago> The problem is that there isn't enough investment despite the corporations having huge piles of cash. The billions in stock buy backs in the US are a testament to this Which is it? Are corporations sitting on huge piles of cash or are they using the cash for stock buy backs? US has relatively low savings that has gone down from about 10% in the 70s to a low of ~3% in mid 2000s to ~7% today (ignoring 2020 which shot up savings to 30+%). Compare that to China which has much higher growth which regularly saves ~36% https://tradingeconomics.com/united-states/personal-savings https://tradingeconomics.com/united-states/personal-savings https://tradingeconomics.com/china/personal-savings https://tradingeconomics.com/china/personal-savings