CEOs are to blame for slow growth
MSN Money's Anthony Mirhaydari explains why executives are at fault for the snail's pace recovery.
In the video below, Mirhaydari explains why a slow growing economy is the fault of CEOs' cautious business strategies and how current executives' attitudes will hurt American workers.
The problem begins, Mirhaydari says, with short-term rather than long-term strategic business decisions. In order to boost profits, executives prefer to cut many costs at the expense, not only of workers, but of their own companies too.
Mirhaydari explains that companies have the money to spend and invest in their businesses, only they choose not to. While corporate profitability and cash on the balance sheet has risen, capital investment has declined.
And this trickles down to the economy, eventually affecting the average American as well.
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Blaming CEO's for playing it slow because of uncertainty over costs involved in Obamacare, an uncertain regulatory environment, a war on conventional energy sources, and an administration that is constantly telling them they are not paying "their fair share" is laughable.
Mr. Mirhaydari would be doing EXACTLY the same were he running a large corporation. CEO's today have to make multi-million or billion dollar decisions daily that could be affected by White House policy and their apparent shakedowns of corporations that don't toe the party line.
From a business-friendly perspective, the current administration is the WORST in my memory, possibly the worst in our nation's history.
Funny, I thought slow growth is due to the High corporate tax rate in America.
You don't have to have a 6 year degree to understand this.
CEO'S want to grow their corporations and provide a yield to stockholders.
Cut the corporate tax rate for Corporations wanting to hire and Grow, and watch the Economy take off!
More profit for corporations, more Employee's. More Revenue generated for the IRS.
Working for a large fortune 500 company, our CEO said that "Obamacare" would have very little or no effect on our business or daily opperations. This video is an exact description of what we are going through every day here in our company. Squeezing today to appeal to shareholders, and not looking at what it is doing to our tomorrow!
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Investors should note whether this phrase gets dropped from the Federal Reserve's policy statement after its September meeting.
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