Europeon Debt Crisis: There isn't another option EXCEPT austerity.

[Ail]

Mr Khan said:

Kasz216 said:
I mean, actually the biggest problem the US faces right now is that the US companies have made some huge profits but aren't reinvesting that. While it's fun to just blame the big faceless corporations, a better question is... wh

Uncertanity to make a profit/uncertantity about costs of obama's healthcare plan/uncertanity of their tax rates.

Plenty of money is sitting out of the economy because of this.

To use a simple example. Say you own a shoe making company, and the government puts in a stimulus for shoes. Are you going to reinvest that money in your buisness, knowing that shoe demand is based soley on goverment spending that can't keep up for every, that soon you'll have to pay an indeterminate amount extra per employee, that your bank may have to keep more money on hand, therefore woudln't even give you a loan right now if you asked?

For the US, there is no real answer but time, for stuff like the Obama healthcare law to either go it's course and it's price be known, or for it to just disappear.

Really, that's the only answer for most financial problems but whatever. (With deficit spending only existing in times of trouble to provide for those in need, not companies that aren't going to reinvest until all the uncertainty is gone anyway.)

That's why the US "recovery" has essentially been a jobless one with little to no help to the average person.

Forcing a higher taxation rate on idle money could kick that around. I would argue for regulations that reward companies for growth and punish companies for providing executives with excessive pay-rises or simply sitting on huge warchests for so long. If the carrot of economic growth through spending because of companies' petty political concerns cannot be used, then the stick must be employed: spend the money well or i'll just take it from you and spend it how i want.

Personally I'm all for something being done to tax the cash companies are holding in foreign accounts...

As a shareholder of Apple and Google, that money actually does not benefit me, Apple,  Google and the others don't want to pay the tax so they don't bring the cash back and they can't put that cash to work or redistribute that cash to shareholders, it's a loose-loose situation and despite what all mighty Apple board says, it does not benefit me as an Apple shareholder........

 

They should change it back so that profits earned in foreign countries get taxed when they happen, not when the money is sent back so that i can get my hand on some of that money.

Besides huge companies sitting on huge pile cash rarely creates growth, it leads to costly merger-acquisitions on the end which most of the time end up destroying jobs and shareholder's money ( mercedex-chrysler, aol-time warner,....).