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Private Sector IS Doing Fine — Backing it Up with Facts!

28 Jun

So President Obama stated last week that the “private sector’s doing fine,” and Republicans were ecstatic to have something to misconstrue!  Unfortunately for Republicans, the President was telling the truth.

For their part, Republicans depend on a devoted Republican electorate that politicians know aren’t worried about bothersome facts and details.  But since I foolishly believe facts and observations based on facts are helpful, here are some quotes from various news sources giving a fuller picture on how the private or business sector is really doing:

…Howard Silverblatt, a senior index analyst at Standard and Poors, says [Google and Alcoa have] plenty of company. Just look at the quarterly reports, he says, and you’ll see that businesses large and small are hoarding cash. (2009)

from a story by Jeremy Hobson, Marketplace Business

The reason companies can be so generous [with dividends] is that many are flush with cash. By one measure, U.S. corporations have a record amount of cash and equivalents…Companies saved cash by canceling capital expenditures, laying off employees, and squeezing dividend payments. (2010)

from an article by Ben Steverman, Bloomberg Businessweek

Corporate America’s cash pile has hit its highest level in half a century…The cash pooling up at companies has the potential to help the economy grow more vigorously and bring unemployment lower—if they start spending it on new plants, equipment and employees. (2010)

from an article by Justin Lahart, The Wall Street Journal

U.S. businesses are investing their cash in labor-saving technologies. This boosts their productivity, but not their payrolls…corporations are using their pile of money to pay dividends to their shareholders and buy back their own stock — thereby pushing up share prices. (2010)

from a commentary by Robert Reich, Marketplace Commentary

In March, U.S. companies raised more money through stock offerings than any month since March 2000…companies will only hire selectively for now. Partially, that’s because executives are still stuck with a poverty mindset from the recession; they’re worried the new money might disappear. (2011)

Companies for years have been using buybacks to reduce their shares outstanding, which can help boost earnings per share and ultimately propel share prices higher…companies deployed huge cash stockpiles to satisfy investor demands for return. (2012)

from an article by Steven Russolillo, MarketBeat for   The Wall Street Journal Blogs 

The overall U.S. economy may be moving at a sluggish pace, but for corporate America, 2011 was a banner year. The Fortune 500 list came out today, and it shows record high earningsTheir profits increased more than 16 percent from last year to total more than $824 billion. (2012)

from a story by Melissa Block, All Things Considered

(All bolding and underlining in quotes was added.)

 

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