As David Kay Johnston from Reuters says in the video – that’s nearly $13,000 per man, woman and child in America. He makes the case that these corporations are hoarding cash … which they are of course. Very easy to understand video. And corporations are either giving that money to shareholders which is mostly just rich Americans or mostly just sitting on it.
But as long as these corporations hoard their cash … that means it doesn’t flow through to middle America which has the effect of diminishing consumer demand. And as consumer demand diminishes … corporations hold back more. It’s a downward spiral. This is rational behavior by corporations but just one more reason to tax corporations that are already sitting on profits that are simply obscene.
You can find the Federal Reserve “Flow of Funds” report HERE.
Corporate profits are at an all time high which you can see HERE.
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