Nobody’s business, least of all not government’s business.
There are a number of ways to look at excess within a company. I worked for a company fifteen years ago that accumulated a vast amount of cash, for the purposes of eventually paying off the CEO who created the company (there was a $200 M stock-pay-off when he eventually choose to leave), and they had this desire to buy a minor competitor after they were supposed to win a government contract.
Some companies sit on cash for a long time....with desires to buy back their own stock. Some companies want to continually hint of a massive stock dividend, but keeping putting it off.
Cash is a blessing.
Given high inflation, yep!
In the corporate world there is definitely the concept of too much cash. You’re supposed to be using the cash to grow the business, if you’re sitting on a horde investors want to know why it isn’t going anywhere.
Government-created inflation will put a stop to these selfish “hoarders”
With todays government and climate, there is no good place to invest that kind of cash
Is there a difference between too much and more than you need?
To me, money is the vehicle to accomplish tasks.
If my earthly needs are taken care of ... and my desires are met, the only thing left is (to me) humanitarian aid.
Don't know how I'd deal with that.
I'm not going to go into Austrian economics here, but to elaborate on something that is not common knowledge, even among Christians.
The Torah's lending system without usury and with debt forgiveness together with the Jubilee system were the anti-trust laws of their day. The monetary goal of that system was to increase monetary velocity and maximize the marginal value of capital, putting every penny into the hands of those most likely to produce as much wealth from every penny as possible, thus maximizing total aggregate wealth.
By contrast, stored cash produces nothing. Beyond the maximum of that marginal value curve, the more one has, the less valuable each monetary unit becomes.
Together, these Judaic laws were designed to have every person producing at the maximum of their ability, which not only maximizes total wealth, it defrays the otherwise socialized risk of rebellion. Historically, the wealthy do not do well in popular rebellions. The Torah's system thus reduced the risk of political catastrophe, teaching the wealthy that what they have is not due to their own work but is a blessing from the Lord. IMHO, that "sealing" if you will, that protection from catastrophe, is why it the Jubilee was to commence on Yom Kippur.
Stupid article. Corporations aren't individuals. The managers of a corporation have, legally, a fiduciary duty to the stockholders, to maximize the stockholders' return on their investment. Hoarding cash when that cash could be either invested profitably in growing the business, or returned to the shareholders as dividends, may very well (depending on the facts, of course) be a violation of that legal duty. Comparing this to an individual's decision to save his or her money instead of spending it is a stupid analogy.
The companies that hoard cash may be ensuring that they can weather a downturn in sales and still pay employees and benefits. They may be hoarding money so that when their competitors go under due to the inability to get their debt limits extended, they can go on a buying spree.
Companies “hoarding” cash have big savings accounts and emergency funds - and are more likely to stay in business. IE, the smart ones.
How about creating a atmosphere that encourages investment and risk taking, and doesn’t penalize success? How about one that doesn’t think first about how much tax to take from profits, but one that tries to celebrates and encourages profits???
Maybe I'm missing the point here, but isn't a cash position even more ridiculous when interest rates are at record lows and inflation is a serious threat?
Depends on what they mean by “cash”. Bills and coins? CD’s? Munis or T-bonds? Ledger entries?
Each has it’s own opportunity cost, risk, and valuation.