Large companies are sitting on huge reserves of cash. They claim they aren’t investing in creating jobs because there is too much uncertainty over the economy. They don’t know how many regulations they will have to face and what they will be taxed on in the future. While this is true to a certain extent, in a truly free market that’s not hindered by crony capitalism and a government that picks favorites, many of these large companies would break apart as a natural step in the economic evolutionary process. Investors would fail to see any financial benefit investing in a large corporation where there is a large reserve of cash, but revenue gains are incremental at best.
I think these companies are sitting on cash because it’s easier to make profits when you collect interest for simply keeping your money in a financial institution and you have the government allowing unfair advantages in the marketplace. There’s no incentive to innovate.
We need some Teddy Roosevelt. We need to stop protecting big companies through special interest legislation. Let’s have market forces take over. Let these big companies break apart under their own weight and reform as several smaller, individual companies. That will foster innovation and lead to more jobs as companies are forced to compete. We’d have a more vibrant economy as a result.