[lbo-talk] Goodbye to the export of surplus capital?

Ted Winslow egwinslow at rogers.com
Mon Feb 7 09:42:47 PST 2011


Doug Henwood wrote:


> U.S. corps have accumulated vast amounts of cash over the last couple of decades, much of which they've passed along to shareholders through dividends, buybacks, and takeovers. So a lot of money has passed from the "real" sector to the financial.

Aggregate income in a period is identically equal to aggregate expenditure in the same period. To have some part of aggregate "saving" in a period accumulate as cash is to have aggregate income exceed aggregate expenditure by the amount of the accumulated cash. How is this possible?

Ted



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