Too much cash.
A healthy economy has a balance of good investment ideas on the one hand, and cash seeking investment on the other hand, along with enough demand to soak up new supplies resulting from that investment. Right now, there’s just too much cash sitting around. And the Republican Party, which should know better, is anxious to create tons more with a tax “reform” bill which, its advocates say, will take trillions of dollars of demand out of the economy and put trillions of dollars into the hands of investors.
This is supposed to boost the recovery. Uh, no.
It’s easy to see how we have too much cash. Google parent Alphabet, for instance, has $100 billion of cash on its books, and Apple has $250 billion. Advocates of a tax cut insist that allowing repatriation of these funds, when held offshore, will deliver cash to investors, who will then invest it.
There’s no assurance of that. Why assume investors will find places for excess cash when the geniuses at Google can’t?