Corporations and their shareholders. A study out yesterday from a group of U. Mass. economists says that major U.S. banks and corporations are in possession of $3.6 TRILLION in cash and other liquid assets, of which at least $1.4 TRILLION isn't necessary for their financial health and could instead be used to create 19 MILLION new jobs. They predict that if all of that money were actually spent on "productive investments and job creation" instead of remaining hoarded in the bank, the unemployment rate could fall below 5% by 2014.
So the next time you hear that raising taxes on rich people and corporations would hurt "job creators" by taking the cash they need to hire people, it's worth asking whether these corporations would even notice if a small bit of that $3.6 trillion left their pockets to help pay for needed government services. When you're swimming in the giant pool of money, you don't notice when the water drops an inch.
Also, check out this interesting take on why raising taxes would create jobs (hint: it's not because rich people would then willingly start paying more taxes).
hear hear! I'll look forward to reading your posts Josie. In struggle/context! AnneReplyDelete