For The Slant's latest Big Ideas column, Jeff Reeves takes a look at spending among large U.S. corporations, and upon seeing that there still is not much, has an idea for individual investors: invest in yourselves.? Reeves says that is what the big businesses should be doing themselves, and innovation requires such investment,:
It?s cause and effect ? a lack of business spending means a lack of jobs and a lack of consumer power. And most economists and politicians would assert that the cycle works both ways.
But theoretically, shouldn?t the reverse also be true ? that consumers spending more will enrich businesses, who continue to grow and hire and spend? What happens when corporations break the deal; when consumers spend but businesses don?t?
That might be part of the problem we are seeing right now.
After all, businesses have some?$1.9 trillion in the bank?just sitting idle ? or if you want to get creative with accounting, perhaps as much as?$5 trillion in cashcounting other assets and overseas money.
After all, CEOs are?darkly pessimistic while consumers are upbeat.
After all, America is stuck in seeking ?efficiency? through cutting and not ?empowerment? through big ideas, as a?New York Times column?puts it.
As to how we break this cycle and enrich both sides instead of just one ? that?s anybody?s guess.
So if you?re a consumer wondering about the best investments right now, it might be worth looking inwardly instead. There?s a decided lack of innovation and opportunity in corporate America right now, so invest in?yourself?? start your own business, or noodle away on what could be the world?s next big idea.
Read the full article here.
Posted 11-12-2012 4:47 AM by Graham Griffith
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