[lbo-talk] The Chinese assembly line: where's the other $19.65?

Doug Henwood dhenwood at panix.com
Thu Feb 9 09:12:41 PST 2006


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



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