Here comes Obama’s double dip.
U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.
Motorola CEO Greg Brown warned Congress that inaction on the ‘fiscal cliff’ will undermine the U.S. economy; Intel announced the retirement of CEO Paul Otellini; Netpage’s CEO Paul Morris joins Digits to discuss his new interactive app.
Half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.
Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined.
Naturally, hiring is also plunging and layoffs are rising. Obama’s solution is to reduce corporate profits via tax increases. That should fix things. That should fix them good.
Elections have consequences and this is for what Americans voted.