A handful of big companies have debt issues, like GM, but these don’t influence the big picture much. (BTW: Much of GM’s “debt” is unfunded pension obligations and not actual bonds.)
The point is that there is plenty of capital available. Companies have cash, they can easily borrow, the market is strong and they can issue more equity.
But they aren’t doing it because there is no demand.
It’s not taxes and it’s not regulation that are preventing companies from investing. Those are bullshit explanations by a political party that is trying to differentiate themselves and discredit the other team. There is no CEO in America that is choosing not to expand because of taxes or regulation – they are holding back because they are concerned that their markets cannot grow.
(You will hear of CEOs that complain about taxes and regulation in order to be consistent with the party-line, and because it still helps their bottom line to change these policies, but taxes and/or regulation are NOT the driving issue in the economy right now – they are just the political meme from one side of the aisle.)
The capital is there, plenty of it. Nobody is using the capital to expand because not enough consumers are able to buy what corporations are building. There is overwhelming data to support this argument.[/quote]
Are you intending to deny the debt side of the equation? No one is denying companies have cash…
