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Dormant Capital, An American Problem

July 5th, 2018 · No Comments

  • Much of the effect of tax cuts for corporations depends on the notion that capital is scarce; it isn’t. Capital is abundant.
  • The problem is much has accumulated at corporations and the top of the income and wealth pyramid where it largely sits inactive.
  • Tax cuts might move the needle in one respect as they increase the incentives to invest.But they’re liable to only increase the pool of inactive capital.

Source: Dormant Capital, An American Problem | Seeking Alpha

Tags: Economy