A Tale of Two Families

* NOVEMBER 2, 2009

Jittery Companies Stash Cash
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http://online.wsj.com/article/SB125712303877521763.html?mod=djemITP#articleTabs%3Dcomments


With respect to companies not investing right now, they are not the culprit you portend, it is government and government policies that are a clear cause of these problems (along with unions).

Think of two families with similar incomes and similar job prospects.

When the economy turns down, one cuts back and builds resources (read: companies).

The other family not only continues its previous level of spending on anything and everything, but ups its consumption of non-essentials and takes on debt (read: business).

Now, which of these families do you think has a better future?

Sadly, the second spendthrift family has the right to tax the savings of the first family. So, one can only image that the first family is thinking of moving out of their grasp.