Sorry, but real-world evidence absolutely proves, beyond a shadow of a doubt, that US companies absolutely aren’t hurting for cash: they’ve got ONE TRILLION DOLLARS of uninvested, non-job-creating cash right now. See the Reuters article, “U.S. companies hoarding almost $1 trillion cash: Moody’s” at
U.S. companies are hoarding almost $1 trillion in cash but are unlikely to spend on expanding their business and hiring new employees due to continuing uncertainty about the strength of the economy, Moody’s Investors Service said on Tuesday.
Cisco Systems (CSCO.O) has the largest cash balance, at $39.86 billion, while Microsoft (MSFT.O) is second with $36.79 billion, Moody’s said. Google (GOOG.O) has the third-largest balance with $30.06 billion, followed by Oracle (ORCL.O) with $23.64 billion and Ford Motor Co (F.N) at $21.89 billion.
Technology companies held the most cash as a sector, at $207 billion, followed by pharmaceuticals with $124 billion, energy at $105 billion, and consumer products with $101 billion, Moody’s said.
So will they create more jobs if they can have more cash, courtesy of tax breaks paid for by the “little people?” Why, no! Bloomberg reports, “U.S. Technology Companies May Double Overseas Cash, Moody’s Says” at
The amount of cash major U.S.-based technology companies hold overseas may almost double in the next three years to $238 billion, Moody’s Investors Service said today in a report.
Companies including Apple Inc. (AAPL) and Microsoft Corp. (MSFT) have kept their cash overseas to avoid paying as much as a 35 percent U.S. repatriation tax on their earnings. The 11 companies in the report hold an average of 73 percent of their cash overseas, and Moody’s predicts that number will increase to 79 percent by 2014.