From Sociological Images:
The dominant firms in the U.S. and other major capitalist counties are happily making profits, but they aren't interested in investing them in new plants and equipment that increase productivity and create jobs. Rather they prefer to use their earnings to acquire other firms, reward their managers and shareholders, or increase their holdings of cash and other financial assets.
The increase in profits has swamped the increase in investment over the relevant time period; in fact, investment in current dollars has actually been falling.
Looking at the ratio between these two variables helps us see even more clearly the growth in firm reluctance to channel profits into investment. The investment ratio (investment/profits) was 62% in 1971, peaked at 69% in 1979, fell to 61% in 2000 and 56% in 2008, and dropped to an even lower 46% in 2012.
According to Michael Burke, if U.S. firms were simply to invest at the level they did in 1979, not even the peak, the increase in investment in the American economy would exceed $1.5 trillion, close to 10% of GDP.
Showing posts with label investments. Show all posts
Showing posts with label investments. Show all posts
Tuesday, November 5, 2013
Saturday, June 30, 2012
U.S. Net International Investment Position at Yearend 2011
From the Bureau of Economic Analysis
The U.S. net international investment position at yearend 2011 was -$4,030.3 billion (preliminary), as the value of foreign investment in the United States continued to exceed the value of U.S. investment abroad. At yearend 2010, the U.S. net international investment position was -$2,473.6 billion (revised). The -$1,556.7 billion change in the U.S. net investment position from yearend 2010 to yearend 2011 was mainly attributable to net price changes of -$802.1 billion and net financial flows of -$556.3 billion.
The U.S. net international investment position at yearend 2011 was -$4,030.3 billion (preliminary), as the value of foreign investment in the United States continued to exceed the value of U.S. investment abroad. At yearend 2010, the U.S. net international investment position was -$2,473.6 billion (revised). The -$1,556.7 billion change in the U.S. net investment position from yearend 2010 to yearend 2011 was mainly attributable to net price changes of -$802.1 billion and net financial flows of -$556.3 billion.
Tuesday, June 16, 2009
New York Issues Guidelines For Victims Of Ponzi-Style Investment Schemes
New York State Department of Taxation and Finance Commissioner Robert L. Megna has announced tax guidelines for people who suffer financial losses through fraudulent investment arrangements commonly known as Ponzi schemes.
To view the entire document please visihere.
To view the entire document please visihere.
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