Now there’s a question.
Apparently if you are one of those American companies that hoard cash, you would do absolutely nothing. Just keep it.
Here we are in the worst economic crisis in decades and we have American Multinationals, not banks by the way, but American companies hoarding cash and not investing in anything at all.
We have both the President and Willard ‘Mitt’ Romney talking about the need to create jobs. Willard favors the private companies, if only we don’t tax them, and President Obama favors a fairer, pay-as-you-go and by the way help your country method.
Research has shown that taxes don’t bother these multi-national companies for a very simple reason.
THEY DON’T PAY TAXES
So Willard’s reasons are not valid.
Offshore tax havens, creative accounting and other nefarious ploys such as those Willard himself uses, ensures that the cash hoard is safe and out-of-the-country.
All this rhetoric about ‘growing jobs’, ‘creating a stable economy’, ‘helping the working and middle class’ is just hot air.
$2 TRILLION. Think about that number and think how many jobs could be created if these ‘Patriotic’ American companies actually invested in the country that enabled them to amass such a vast mount of CASH.
We are not talking assets here. We are talking CASH.
I’ve been thinking about what I would buy with that kind of money and it would be a country, THE USA.
So that begs the question, why don’t these American companies invest their trillions in cash in America?
Are they waiting for WIllard to be elected? Is it a ploy to force President Obama out-of-office?
Is Willard going to magically release this $2 TRILLION cash and create millions of job?
Even I find that a difficult strategy to accept. But on the other hand, why haven’t they invested over the past three years during a recession created by eight years of Republican mismanagement and decades of deregulation?
The principle that keeps Willard’s money offshore is the same principle that keeps the American Companies that own the $2 TRILLION in cash from sharing. They simply don’t want to. They don’t care about the economy, the poor, the middle class, hell they don’t care about the country, just the cash.
Where does the figure $2 TRILLION come from? Well from the Federal Reserve Flow of Funds report. But IRS numbers show a different picture, because most of the companies that own these huge cash reserves are offshore and don’t pay taxes. We can assume quite easily that we are really talking about cash in excess of $6 TRILLION, maybe a whole lot more. The Federal Reserve doesn’t know and neither does the IRS, they can only guess.
“But saving is a good idea”, I hear the fiscal greedy bastards scream. Sure if you think your company walks the razor’s edge of survival, but the truth is that these companies who own all the cash have shown that their profits have grown by nearly another $2 TRILLION in just the last 3 years.
That’s pre-tax profit, but of course they don’t pay tax because the cash is offshore, just like Willard’s. He only pays tax on the interest he earns from his offshore accounts.
This greed is a serious social problem. And there is no doubt that the people who control the $2 TRILLION (that we know about) will be the first to cry and hold their hands out if they feel that they are losing their grip on their cash.
Read, Multinationals and the High Cash Hoarding Puzzle, published by the National Bureau of Economic Research, before you vote in November.
I am a believer in Capitalism, that would be Social Capitalism, to be able to reap the rewards of your labours.
I do not believe in stealing the Country’s assets, both in labour and in cash, and then sitting on this pile of cash thumbing your nose at the people who made your wealth possible in the first. Every multi-millionaire starts with a great idea and hard work, but it takes hundreds and sometimes thousands of workers to create the wealth that enables that CEO to live a life that 99% of population of America cannot even dream about.
Being a member of a society, a country, means giving back.
$2 TRILLION dollars would go a long way to solving the economic problems of this country and putting Americans back to work, those very Americans that created the $2 TRILLION in the first place.