The cash hoard of Western companies

| December 11, 2013


By Michael Burke | Socialist Economic Bulletin | *Click HERE to read article* Supporters of ‘austerity’ would have a very strong argument if there really were no money left. In that case, opponents of current policy would be left arguing only for a fairer implementation of those policies, or that perhaps they could be implemented more slowly. This is not the case. Firms in the leading capitalist economies have been investing a declining proportion of their profits.


By Michael Burke | Socialist Economic Bulletin | *Click HERE to read article* Supporters of ‘austerity’ would have a very strong argument if there really were no money left. In that case, opponents of current policy would be left arguing only for a fairer implementation of those policies, or that perhaps they could be implemented more slowly.  This is not the case. Firms in the leading capitalist economies have been investing a declining proportion of their profits. This is the cause of the prolonged period of slow growth prior to the crisis and a number of its features such as stagnant real wages, so-called ‘financialisation’ and the growth in household debt. 

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