He says that like it is a bad thing. Too much emphasis on capital investment and companies can go out of business. Building too many stores becomes a burden and frequently leads to closures and bankruptcy.
This is why tax-free repatriation of overseas profits is always a bad idea; corporations use the windfall for stock buy-backs which reduce the number of shares on the market in order to boost the share price. Sometimes it’s used as direct payouts to shareholders. Rarely, if ever, do such windfalls result in better wages or working conditions for workers. NEVER do such windfalls result directly in increased hiring — no corporation hires people because it has the resources to do so, it hires people because it absolutely has to to conduct business (this is why the idea that giving tax cuts to corporations will result in new jobs; NO ONE adds jobs because they can, they add jobs because they have to. Executives get bonuses for keeping payroll low, either by keeping employee rolls as low as possible, or by not increasing wages unless absolutely necessary to retain their workforce).
I worked in an industry that depended on chemical plants and refineries to upgrade their equipment. For a too long, these plants neglected major projects to expand and perform major maintenance projects due to a slow economy. When conditions had degraded to the point that they were forced to have the work done, there was a shortage of companies available to do the work.
I agree with the responses given. Short sighted, stupid business practices should be avoided at all times. I was only pointing out that sometimes the strip seems to denigrate business. Business must make profit. Profit is not evil. Investors do so with an expectation of gain. All of this needs to occur so that the workers, whether a family owned establishment or a large company can survive. I and likely you are part of the problem. Do you look for the product with the best (lowest) price? I frequently do. Companies want your business.
Compassion, respect, fairness, for all involved is a “heart” problem which does need to be fixed. I freely admit that I don’t have the answers to all of this.
mywifeslover over 3 years ago
He says that like it is a bad thing. Too much emphasis on capital investment and companies can go out of business. Building too many stores becomes a burden and frequently leads to closures and bankruptcy.
dwane.scoty1 over 3 years ago
Interesting to see what effect the Pandemic will have on many future capital projects.
T Smith over 3 years ago
This is why tax-free repatriation of overseas profits is always a bad idea; corporations use the windfall for stock buy-backs which reduce the number of shares on the market in order to boost the share price. Sometimes it’s used as direct payouts to shareholders. Rarely, if ever, do such windfalls result in better wages or working conditions for workers. NEVER do such windfalls result directly in increased hiring — no corporation hires people because it has the resources to do so, it hires people because it absolutely has to to conduct business (this is why the idea that giving tax cuts to corporations will result in new jobs; NO ONE adds jobs because they can, they add jobs because they have to. Executives get bonuses for keeping payroll low, either by keeping employee rolls as low as possible, or by not increasing wages unless absolutely necessary to retain their workforce).
banjinshiju over 3 years ago
I worked in an industry that depended on chemical plants and refineries to upgrade their equipment. For a too long, these plants neglected major projects to expand and perform major maintenance projects due to a slow economy. When conditions had degraded to the point that they were forced to have the work done, there was a shortage of companies available to do the work.
mywifeslover over 3 years ago
I agree with the responses given. Short sighted, stupid business practices should be avoided at all times. I was only pointing out that sometimes the strip seems to denigrate business. Business must make profit. Profit is not evil. Investors do so with an expectation of gain. All of this needs to occur so that the workers, whether a family owned establishment or a large company can survive. I and likely you are part of the problem. Do you look for the product with the best (lowest) price? I frequently do. Companies want your business.
Compassion, respect, fairness, for all involved is a “heart” problem which does need to be fixed. I freely admit that I don’t have the answers to all of this.