Re: The Chinese assembly line: where’s the other $19.65?
Sean Johnson Andrews wrote:
But isn’t it also true that little of this profit is really beneficial to “America” since little of it is reinvested in US infrastructure, most of it is kept abroad, even if it doesn’t stay in China?
Corp profits have thrived in this expansion, up an average of 25% a year. But corporate investment hasn’t followed suit - corps have been transferring buckets of cash to shareholders, via dividends, buybacks, and takeovers. They don’t keep it abroad so much as they keep it for themselves.
Doug