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Corporate Cash Con
- pwg 15y agoNon-paywalled link: http://economistsview.typepad.com/economistsview/2011/07/paul-krugman-corporate-cash-con.html http://economistsview.typepad.com/economistsview/2011/07/pau...
- 1010011010 15y agoContrary viewpoint: http://krugman-in-wonderland.blogspot.com/2011/07/krugmans-keynesian-cash-con.html http://krugman-in-wonderland.blogspot.com/2011/07/krugmans-k...
- mrj 15y agoKrugman's main point is that giving more money to rich people isn't necessarily going to stimulate growth because they are already sitting on lots of money. Your link there goes off on a tangent about government spending and taxes instead of directly addressing the main point: trickle down isn't going to work when the corporations aren't investing, anyhow. To his point: corporations need certainty to spend, sure. Few doubt that. But so does the consumer. The save-the-poor-rich-guy crowd forgets that the consumer is the major driver of economic activity. If all you talk about is how the government is broke and we're going to have to dismantle entitlements and cut spending and your kid's school can't afford half the teachers and so on, people are going to save all they can against an uncertain future. Indeed, savings rates have been on the rise. We are never going to get the economy going again by removing government spending to the least fortunate and giving more money to the rich who're hoarding already. That will cause even less liquidity and deflation by removing money from active circulation. It'll be a disaster. The rich should be more mindful that a healthy economy benefits them, too.