May 9, 2017
Why aren't American companies spending money?
For forty-years American management has leveraged capital mobility to demand concessions from organized labor. Holders of sovereign debt do the same to demand reductions in public spending and shrinking the public sector. This has severely strained liberals’ willingness to stimulate private investment through taxes and transfers. Meanwhile, corporate boards of directors continue to refuse to invest on any but their own terms. Loosening their grip on investment decisions is the only way through this impasse.