As United Steelworkers economist Erin Weir pointed out, that makes Canada’s corporate cash hoard larger than the country’s federal debt, which sat at $612 billion at last count. “The corporate sector’s aggressive accumulation of cash helps to explain the lack of investment and employment growth,” Weir wrote. Some have linked growing cash piles to shrinking corporate tax rates. That’s a debatable notion, but it is noteworthy that these cash piles grew during the same period as Canada saw its corporate tax rate slashed aggressively. Cash hoarding is hardly unique to Canada. Tech giant Apple’s cash pile was $147 billion U.S. at last count, more than the GDP of a majority of countries.
Posted on: Fri, 26 Dec 2014 10:17:21 +0000
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