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For me, it's been fascinating to see what huge companies that are flush with more cash than ever before [1] will do with that cash during a prolonged recession.
by thaumaturgy 14y ago
For me, it's been fascinating to see what huge companies that are flush with more cash than ever before [1] will do with that cash during a prolonged recession.
The most common argument for continuing to lower taxes on businesses is that it will stimulate the economy because the businesses will spend the money on their employees. It looks like what actually happens is that they spend the money waging legal wars against each-other.
[1]: http://www.businessinsider.com/corporate-profits-just-hit-an-all-time-high-wages-just-hit-an-all-time-low-2012-6 http://www.businessinsider.com/corporate-profits-just-hit-an...
- davidw 14y agoI think you'd need more and better stats than a few large mobile phone companies in a turf war to really draw that conclusion.
- hga 14y agoIndeed; I need to learn more about the Long Depression (1873-79 or longer, http://en.wikipedia.org/wiki/Long_Depression http://en.wikipedia.org/wiki/Long_Depression and obviously right when POTS was being developed) but I know that this sort of problem was big in the Great Depression.
- ceejayoz 14y agoLegal wars tend to be expensive because they involve spending a lot of money on employees, though.
- elemenohpee 14y agoOn lawyers and other non-productive employees though, not in a way that would grow the economy. That's a huge broken window fallacy.
- drcube 14y agoWell, law firms and court employees, at least.