An article by John Steele Gordon at the Commentary site caught my attention. He draws attention to what he calls "the strike of capital". He reminds us that during the great depression, one of the major factors prolonging it was the refusal by holders of capital to invest because of a fear that the muddling politicians would make matters worse not better. He suggests that a similar strike is taking place today:
As the New York Times noted in an editorial yesterday, American
corporations are sitting on vast piles of cash. Apple Corporation alone has
about $140 billion in the bank. Altogether publicly-listed corporations in the
United States are holding about $4.75 trillion in cash, not far short of
one-third of annual GDP. In 1995, they held only about $1.2 trillion in cash,
and cash has about doubled as a percentage of corporate assets since that time,
to 12 percent.
Given the Left-leanings of the NYT it comes as no surprise that after harrumphing like a retired colonel in his club it makes no effort to explain why capitalists are sitting on their hands. Mr. Gordon gives them a clue:
Could it have something to do with the fear that federal economic and tax
policies, and Obamacare, might either throw the economy back into recession or
make any investment less profitable and more risky?
Also, the NYT is shocked, shocked, I tell you, that American corporations with overseas businesses are not repatriating the profits back home. Again, Mr. Gordon suggests that it might have something to do with the fact that profits earned abroad are not subject to tax until they are repatriated - duh!
Perhaps, instead of sending 'Old Man Cable' to a gulag (see previous post) we could send him to the NYT, they would all speak the same economic gobbledegook.