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Money doesn't sit still unless it is truly hard cash and stuffed under a mattress. When companies sit on huge piles of cash, what that really means is they hav
by aiscott 14y ago
Money doesn't sit still unless it is truly hard cash and stuffed under a mattress. When companies sit on huge piles of cash, what that really means is they have invested huge piles of cash.
That means they gave that money to someone else, and perhaps they are hiring, or perhaps they in turn invested it again.
- jbooth 14y agoMaybe it's invested in China. Maybe it's run through 10 mutual funds on the way to becoming 10 cents on the dollar in terms of salary. "The cash probably goes somewhere" isn't that convincing. I'm not saying that companies should hire with extra cash if they don't need the employees. That would be a bad business decision. I'm just saying that "cash sitting on the sidelines = probably employment somewhere" isn't a great justification for them paying less taxes than I do. I work too, you know.