So the point of the upcoming tax relieve is to inject money into the economy via consumer spending to prevent the recession. Yet, at the same time, money is resting in the savings account of companies to protect them from the recession. These two approaches to dealing with the economy on behalf of the government and companies seem to contradict each other.
Also, isn’t the company’s goal to maximize shareholders’ return on their investments? Of course, one can make a case for storing cash to increase long-term returns, but if the company is retaining the cash for its sake, let the shareholders have it. I’d rather have the companies I invest in make me money; otherwise, I have a savings account on my own.
Also, isn’t the company’s goal to maximize shareholders’ return on their investments? Of course, one can make a case for storing cash to increase long-term returns, but if the company is retaining the cash for its sake, let the shareholders have it. I’d rather have the companies I invest in make me money; otherwise, I have a savings account on my own.