Posted on 02/11/2013 2:24:50 PM PST by Sir Napsalot
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"..... 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 ...
” 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.
http://www.fool.com/investing/general/2012/10/24/the-best-presidents-for-the-economy.aspx
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.
Uhhhh....... YES.
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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