Skip to comments.Krugman: Corporations "Making So Much Money They Don't Know What To Do With It"
Posted on 02/11/2013 2:24:50 PM PST by Sir Napsalot
"..... there is a global savings glut and a lot of it is corporations are saving. It's a lot of retained earnings just sitting there. Not quite sure why except that maybe they're making so much money they don't know what to do with it," economist and New York Times columnist Paul Krugman said on ... MSNBC's weekend show "Up with Chris Hayes."
(Excerpt) Read more at realclearpolitics.com ...
If I make $10 or $10 million, it is my own business, I'll do what ever I want to, and butt your nose out of my business.
The companies that are making money, and there is fewer now, are likely having trouble identifying a good investment because of this administration
You have to be insane to follow his reasoning.
unless these companies have a room full of dollars... they usually put their money at least in a bank. if they give it to a bank, the bank then loans it out... improve the local economy. if the company put its money in the markets, then it is directly helping the companies it has invested in.
why aren’t loud belly laughs the only response to these whack-a-doodles get? why give them the time of day??
"Let me explain to you how this works: you see, the corporations finance Team America, and then Team America goes out... and the corporations sit there in their... in their corporation buildings, and... and, and see, they're all corporation-y... and they make money."
Or they are preparing for a near-future slowdown, thanks to the world debt being at a record peak. They intend to ride out the chaos that is about to be unleashed.
Yeeaaah, dey so stuuupid, dey don nou.
They should buy few more idiots for MSNBC
The POS dirtbag is worth $2.5 million as a single entity. He is his own business entity. I believe he should be taxed at 95% of his total assets. Nobody needs more than $125,000 to live out their life.
Not the New York Times Corporation, thanks to typists like you.
Didnt you know?!
Paul Krugman is a Nobel Prize winning
Using the “Profits Soar As Wages Stagnate” argument is laughable.
Let me play CEO for a second. My company is amassing huge amounts of cash. We already pay a decent dividend yet our cash flow exceeds our business needs by a ton. What to do? Oh, I got it, I ignore every opportunity to put the money to work for the company and just let it lay around in our money bin so we can all dive into it as we chose to do. Somewhere back in business school I recall something called a risk reward matrix. Alas, not to worry, in the world of Krugman, we just don’t examine such things.
This guy puts the id in idiot.
Why do I always feel now like I’m living in “The Little Red Hen” Golden Book?
Why do I always feel now like I’m living in “The Little Red Hen” Golden Book?
When the currency is fiat and the bankers can create depressions just by altering the currency flow at their discretion, or create inflation by printing huge amounts of currency at will,
it’s easy for them to destroy everyone’s wealth. Millions today, kindling or toilet paper tomorrow.
You think they’re accumulating savings solely because they cut costs.. the point is they’re not reinvesting or exploring new avenues of business. They’re scared of what the government has become.. and what it will become. There is no longer a sense of fair play.. and this is intentional by the regime.
” Krugman: Corporations “Making So Much Money They Don’t Know What To Do With it”
Cool story, bro. Now get the hell out of the way so the grown-ups can keep making that fat cash.
Wrong. Obama has been one of the best presidents for corporations and corporate profits.
Yep and I guess that is why so many corporations can not give out bonuses this year? They have so much money and all. Shut the hell up Krugman!!
Krugman is armed to the teeth with stupidity!
they don’t give bonuses beacuse they don’t have to. It’s a buyers market for employers. 4 years of high unemployment will do that.
Sure they know what to do with the money. Its called “increasing stockholder equity” or “paying dividends.”
That said, I have notice that my employer (in whom I am a stockholder) seems to pay an excessive amount to the high mukkity-muck not to mention other perks for board, etc. Don’t see where he’s worth $200 million - what has he done to increase my dividend or my stockholder equity that is worth that sort of pay? Its not like he has invented anything.
Krugman is laying the blame on the victims.
Krugman got his Nobel prize out of a box of CrackerJax.
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_hour_worked for christ sakes!!!! companies are going to be more profitable when one person does the job of three. this has been going on for a decade. The companies have not gone away just the employee's. Remember productivity is you doing more foe less.
We’re not a huge corporation or anything close, but I did get my Vast Right Wing Conspiracy Memo that instructed me to ‘Hoard Cash’. Waiting for further instructions.
It is an economic principle that neither you nor Krugman understand.
And when a company becomes more profitable due to increased worker productivity, that profit has, historically, driven real increases in worker income. Historically, it has been increased productivity that has driven real increases in income, and it is that increased income that increases our standard of living.
The companies have not gone away just the employee's.
Creative destruction has been going on for centuries, and displaced workers have managed to find new employment, along with the tools and training needed, to drive productivity gains so they can earn more and buy more. That's why capitalism is the best economic system. It allows companies to become more productive and be more competitive.
Remember productivity is you doing more foe less.
Nonsense. Productivity is producing more so your work becomes more profitable so you can enjoy increased real income and the increased standard of living that comes with it. Or, do you think most families have just one car, a black and white television, no central air, and a clothes line running through their back yard?
By the way, measuring productivity in PPP is also nonsense. No one purchases goods and services in PPP dollars. PPP will work if you want to measure the cost of goods and services within a particular country, but it has no bearing on international trade or as a measure of an economy's size and, therefore, it's productivity, on the global stage.
my uneducated response is I do not receive more pay for doing more.
Yeah, well, that can happen during difficult economic times. Even so, the American standard of living has consistently improved over time because of technological advances and increased productivity. Few people would get any pay increases unless their productivity also increased. Individual situations will vary, of course, but I’m talking about the big picture. The average family today has two cars ( or more), larger homes with central heat and AC, color televisions, all sorts of electronic gadgets, and a washer and dryer so mom doesn’t have to use a line strung across the back yard. All those restaurants out there today, that weren’t out there forty years ago, exist because we have more income to support them, and that increased income is driven by increased productivity. It’s Economics 101. Again, your personal mileage may vary.
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