Freewill
Platinum Member
- Oct 26, 2011
- 31,158
- 5,073
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Now the Financial Times reports that the short-term shareholder value theory has a new feather in its cap: it is responsible for killing the economic recovery that should have occurred after the financial meltdown of 2008. Over the last month, the Financial Times has been doing a great job in cataloguing the problems caused by the shareholder value theory. Now Robin Harding has terrific article pinpointing its role in undermining the US economic recovery. In his article entitled Corporate investment: A mysterious divergence he explores a conundrum that has puzzled the worlds top economists: why is net investment at a measly 4 per cent of output when pre-tax corporate profits are now at record highs more than 12 per cent of GDP?
In standard economic theory, this makes no sense. When profits go up, companies should be seizing investment opportunities to lay the groundwork for even more profits in future. In turn, that investment should create jobs, generate more capital goods and lead to higher wages. Thats how capitalism is meant to work. So why isnt it happening? Mr. Harding explores systematically why all the leading scapegoats for whats gone wrongregulations, Obamacare, tax policy, fear of another financial crisis and so onand shows why they dont add up. Then he comes up with the kind of thing that you rarely see in economicsa study that enables us to pinpoint the problem by offering with and without data.
A brilliant study by economists from the Stern School of Business and Harvard Business School, Alexander Ljungqvist, Joan Farre-Mensa, and John Asker, entitled Corporate Investment and Stock Market Listing: A Puzzle? compares the investment patterns of public companies and privately held firms. It turns out that the lag in investment is a phenomenon of the public companies more than the privately held firms. They find that, keeping company size and industry constant, private US companies invest nearly twice as much as those listed on the stock market: 6.8 per cent of total assets versus just 3.7 per cent.
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I blame the "Job Creators"
They are not doing their jobs
I blame the "Job Creators"
They are not doing their jobs
Sort of challenging when you beat them over the head, hand cuff 'em and lock them in a cage. When you increase the regulatory burden there are private sector costs associated with it, when you increase the tax burden there are private sector costs associated with it, when you keep shifting the landscape business cannot plan ahead so they mark time until the fog lifts.
Unlike government, businesses don't have printing presses that they can use to print greenbacks and add un/counter-productive staff with.
I blame the "Job Creators"
They are not doing their jobs
Sort of challenging when you beat them over the head, hand cuff 'em and lock them in a cage. When you increase the regulatory burden there are private sector costs associated with it, when you increase the tax burden there are private sector costs associated with it, when you keep shifting the landscape business cannot plan ahead so they mark time until the fog lifts.
Unlike government, businesses don't have printing presses that they can use to print greenbacks and add un/counter-productive staff with.
The Government doesn't create jobs........"Job Creators" create jobs
We have given them 30 years of supply side economics to show us the jobs....hasn't happened. And what do we get from conservatives?
Government didn't do enough for supply siders. Still waiting for all that trickle down
I blame the "Job Creators"
They are not doing their jobs
Sort of challenging when you beat them over the head, hand cuff 'em and lock them in a cage. When you increase the regulatory burden there are private sector costs associated with it, when you increase the tax burden there are private sector costs associated with it, when you keep shifting the landscape business cannot plan ahead so they mark time until the fog lifts.
Unlike government, businesses don't have printing presses that they can use to print greenbacks and add un/counter-productive staff with.
The Government doesn't create jobs........"Job Creators" create jobs
We have given them 30 years of supply side economics to show us the jobs....hasn't happened. And what do we get from conservatives?
Government didn't do enough for supply siders. Still waiting for all that trickle down
Sort of challenging when you beat them over the head, hand cuff 'em and lock them in a cage. When you increase the regulatory burden there are private sector costs associated with it, when you increase the tax burden there are private sector costs associated with it, when you keep shifting the landscape business cannot plan ahead so they mark time until the fog lifts.
Unlike government, businesses don't have printing presses that they can use to print greenbacks and add un/counter-productive staff with.
The Government doesn't create jobs........"Job Creators" create jobs
We have given them 30 years of supply side economics to show us the jobs....hasn't happened. And what do we get from conservatives?
Government didn't do enough for supply siders. Still waiting for all that trickle down
So, no jobs created in those 30 years?
You are spewing meaningless talking points. In that 30 years we have had periods of full employment.
Adolf Obama touts his policies as being transforming..
We are sinking under the weight of his tyranny and destruction of America
Wars used to be the method our enemies used to try and destroy us
Instead, they have one of their own inside the White House decaying us from the inside out
Pathetic
-Geaux
Thanks for bumping my 6 year old post there Rip Van Winkle? What, you been busy supporting Antifa violence?Adolf Obama touts his policies as being transforming..
We are sinking under the weight of his tyranny and destruction of America
Wars used to be the method our enemies used to try and destroy us
Instead, they have one of their own inside the White House decaying us from the inside out
Pathetic
-Geaux
Are you kidding me?
U.S. adds just 130,000 jobs, a sign Trump’s trade war may have begun hiring slowdown
The job gain was boosted by the temporary hiring of 25,000 government workers for the 2020 Census. Excluding all government hiring, businesses added just 96,000 jobs, the fewest since May.
Adolf Trump touts his policies as being transforming. We are sinking into another recession because of his tyranny and destruction of an economy that was good when he took over.
And we have Putin's puppet in the white house now stupid.
I blame the "Job Creators"
They are not doing their jobs
Sort of challenging when you beat them over the head, hand cuff 'em and lock them in a cage. When you increase the regulatory burden there are private sector costs associated with it, when you increase the tax burden there are private sector costs associated with it, when you keep shifting the landscape business cannot plan ahead so they mark time until the fog lifts.
Unlike government, businesses don't have printing presses that they can use to print greenbacks and add un/counter-productive staff with.
The Government doesn't create jobs........"Job Creators" create jobs
We have given them 30 years of supply side economics to show us the jobs....hasn't happened. And what do we get from conservatives?
Government didn't do enough for supply siders. Still waiting for all that trickle down
Adolf Obama touts his policies as being transforming..
We are sinking under the weight of his tyranny and destruction of America
Wars used to be the method our enemies used to try and destroy us
Instead, they have one of their own inside the White House decaying us from the inside out
Pathetic
-Geaux
Are you kidding me? U.S. adds just 130,000 jobs, a sign Trump’s trade war may have begun hiring slowdown
The job gain was boosted by the temporary hiring of 25,000 government workers for the 2020 Census. Excluding all government hiring, businesses added just 96,000 jobs, the fewest since May.
Adolf Trump touts his policies as being transforming. We are sinking into another recession because of his tyranny and destruction of an economy that was good when he took over. And we have Putin's puppet in the white house now stupid.