626 billions of ‘dead money’ for Canadian businesses

Canadian businesses accumulating ‘dead money’ faster than other G7 countries

Cher M Harper, ils nous avaient bien dît, quand réduisant les impôts des sociétés nous allions créer des emplois.

Eh bien, non !

Il cumule juste du cash.

Remarque je peux les comprendre, dans une économie aussi dysfonctionnelle :

·        Un voisin qui imprime de la monnaie singe en dévaluant constamment sa monnaie ou en donnant des subventions à outrance pour réduire la compétitivité internationale.

·        Un peuple de plus en plus endetté dû à une économie qui a été stimulée par endettement donc, ayant de moins en moins d’argent disponible à CONSOMMER sauf pour les besoins essentiels, ajoutons l’inflation, ajoutons toutes les taxes directes et indirectes que les gouvernements ont l’art de créer pour compenser leurs propres surendettements, en fait, soyons réaliste: le peuple est cassé.

·        Des provinces, tel que le Québec ou l’Ontario où leurs salaires et bénéfices marginaux sont trop hauts, ou bien ce sont nos voisins du Sud qui sont trop bas, peu importe, du pourquoi, on n’est plus compétitif.

·        Des syndicats trop puissants, ou bien ce sont nos voisins du Sud qui n’ont pas assez de syndicats agressifs.

Ajouter toutes ces variables et quelqu’une que je dois avoir oublié, honnêtement, je peux comprendre leurs hésitations.

En fait, on va distribuer notre ‘cash’ en dividendes aux actionnaires, ça sera plus simple !

Extrait de: Canadian businesses accumulating ‘dead money’ faster than other G7 countries, LEE Anne Goodman, The Canadian Press, The Globa and Mail, May. 23 2014

What’s plaguing corporate Canada?

In recent weeks, Canadian businesses — sitting on historically massive cash reserves — have been under fire for using temporary foreign workers or unpaid interns, and chided by political leaders for failing to raise wages or invest in employee training.

They’ve been maligned even by the traditionally business-friendly Fraser Institute for collecting billions of dollars in so-called corporate welfare for decades.

A report by the International Monetary Fund, meantime, sounded alarms about how Canadian companies are accumulating so-called “dead money” — idle cash reserves — faster than any other country in the G7.

Statistics Canada data shows Canada’s corporate cash hoard was $626 billion in the last quarter of 2013, a jump of six per cent over the previous quarter — more than the federal debt and almost a third of the country’s gross domestic product.

The agency also reports that the number of minimum wage and part-time jobs in Canada has been steadily increasing.

The Canadian Centre for Policy Alternatives has found that CEO pay for Canadian public companies listed on the Toronto Stock Exchange has ballooned by 73 per cent between 1998 and 2012, the latest figures available.

“It’s completely ridiculous,” Jerry Dias, president of Unifor, Canada’s largest private-sector union, said in an interview.

“They’re cheap as it relates to paying workers or investing in their employees, but they’re not cheap when it comes to paying themselves. And the jobs they’ve been creating in recent years are largely part-time; it’s all about circumventing having to pay benefits.”

Jayson Myers, head of Canadian Manufacturers and Exporters, doesn’t deny the optics have been nasty for corporate Canada in recent months. But Myers takes issue with the notion that Canadian business leaders are lining their own pockets while neglecting to invest in training or pay decent wages.

“I think it’s misinformed even when it’s coming from a former Bank of Canada governor,” Myers said, a reference to Mark Carney’s famous scolding two years ago of Canadian businesses about their cash reserves.

“Cash reserves are very high but that isn’t a reflection of a failure to invest ... if you look at levels of investment right now, at least in manufacturing industries, it’s at an all-time high and is going up right across Canadian industry.”

Totalement faux, vrai pour les provinces de l’ouest à cause du pétrole mais en panne sèche pour les provinces de l’Est, tel que l’Ontario et Québec qui sont les provinces les plus populeuses.

Capital Needed: Canada Needs More Robust Business Investment

Canadian companies are falling behind rivals in the rest of the world in terms of investment, according to a new report from the C.D. Howe Institute.

The report, written by the institute’s Benjamin Dachis, William Robson and Nicholas Chesterley, finds that companies in Ontario and Quebec, in particular, have hit a 10-year low in investment per worker.

The report comes at a time when the issue of so-called “dead money” — companies that sock away profits rather than spend on new machinery and equipment — remains an area of contention among economists and policy-makers.

Source: Capital Needed: Canada Needs More Robust Business Investment, Benjamin Dachis, William B.P. Robson and Nicholas Chesterley, C.D. Howe, July 17, 2014

Investment per worker - 1
Investment per worker