An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
What are firms doing with all these profits they’re earning and not investing, then? The data show that a large chunk of these profits are being distributed to shareholders in the form of increased dividends and stock buybacks.Right. While households have paid down their debts, the business sector has gone into debt, much of it on questionable "investments" like fracking, overcapacity in transportation and commodity sectors, and stock buybacks.The next recession may be triggered by corporate debt & overcapacity.
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