Originally Posted by faithful_servant
We've already addressed this lame atempt at demonizing business, but I'll beat you up over once again...
Businesses MUST hold profits in reserve when the economy is down for a couple of reasons. One is the threat of increased taxes. Businesses must have a cash reserve to be able to pay this non-value-added expense. Another is the fact that when the economy does turn around, they will need the ready cash for market expansion. Conserving cash in a down economy is smart business. You want to make it sound like businesses are hoarding cash, wehn the fact is that they are simply doing what businesses have to in times like these. Every time this has come up, it's come with the assertion that this is part of what is keeping the economy down, when the fact is that businesses don't have places to spend this cash that will bring a return on that investment. Over-expand and if the economy stalls even longer and you're hosed because you can't recoup the investment. Create non-profitable jobs and all you do is throw money down a hole.
FS, too often you confuse your capability to hit "reply" with actually offering something decent...
Here, I do not even need to add any new information.
All I have to do is point out the information in the ORIGINAL post which you ignored or overlooked.
My reply isn't even necessary to rebutt your nonsense for people who were paying attention.
First off, if this had been 2008, I would agree with you regarding businesses saving their reserves.
But this wasn't about 2008. It was 2009 and the recession was technically over at that point.
Second, and more importantly, THIS little gem.
"Last year, top executives’ salaries increased 27 percent"
Does that sound like the businesses are concentrating on squirreling away their reserves?
Can you explain to me how it is not a glaring discrepancy for the top execs to increase their own salaries a WHOPPING 27 percent
, while having only a measly growth for the average working man?