Linked by Thom Holwerda on Mon 1st May 2017 10:56 UTC
Apple

Apple Inc. is expected to report Tuesday that its stockpile of cash has topped a quarter of a trillion dollars [actual source is the WSJ, but it's paywalled there], an unrivaled corporate hoard that is greater than the market value of both Wal-Mart Stores Inc. and Procter & Gamble Co. and exceeds the combined foreign-currency reserves held by the U.K. and Canada combined.

The goal of a capitalist, free market-based society is that as companies get more successful, they invest their winnings back into the company, increasing productivity, hiring more people, and thus improving the overall state of the economy. While inherently flawed, this system has brought us a lot of good, and has lifted quite a number of people out of abject poverty.

However, one has to ask what individuals and corporations hoarding this much money as Apple is doing are contributing to society. Apple's 250 billion dollars are locked away, and aren't used for anything. Every day, Apple is extracting vast sums of wealth from society - as they should in a capitalist society - but they are no longer investing it back into society. And Apple isn't alone in this, of course - a rich few are extracting immense amounts of wealth from society without giving back.

This breaks the traditional capitalist model.

Things like increased automation and robotisation are only going to accelerate this process. At some point, we're going to have to stop and ask ourselves if this is tenable, and if not, what we are going to do about it. It goes against the core 'values' of die-hard capitalists, but we might reach a point where we have to forcibly - through law - take it from companies like Apple.

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RE[2]: it's all about tax
by kristoph on Mon 1st May 2017 22:02 UTC in reply to "RE: it's all about tax"
kristoph
Member since:
2006-01-01

The dollars are not 'untaxed'. That's really the whole point. The money has been taxed in one jurisdiction and so many companies - including Apple - don't want it to be taxed yet again in the US at the 35% rate.

Reply Parent Score: 2

RE[3]: it's all about tax
by Alfman on Mon 1st May 2017 22:34 in reply to "RE[2]: it's all about tax"
Alfman Member since:
2011-01-28

kristoph,


The dollars are not 'untaxed'. That's really the whole point. The money has been taxed in one jurisdiction and so many companies - including Apple - don't want it to be taxed yet again in the US at the 35% rate.


It is "untaxed" with respect to the IRS, that's the whole reason companies are keeping the money overseas - to avoid taxation. It's not just the US taxes they're avoiding either, they avoid taxes around the world by funneling money to wholly owned subsidiaries that have no products or staff but are designed solely to avoid taxes.

https://www.bloomberg.com/news/articles/2013-05-22/google-joins-appl...

I knew we discussed this on osnews before:
http://www.osnews.com/story/29374/EU_Ireland_gave_illegal_tax_benef...

Edited 2017-05-01 22:38 UTC

Reply Parent Score: 2

RE[3]: it's all about tax
by judgen on Tue 2nd May 2017 10:35 in reply to "RE[2]: it's all about tax"
judgen Member since:
2006-07-12

Not to be cynical but there is also the inflation tax that the US uses: 2362.6% is the cumulative inflation since 1913 (when the federal reserve was instituted to fight inflation and market downspirals)

Edited 2017-05-02 10:35 UTC

Reply Parent Score: 2

RE[4]: it's all about tax
by Alfman on Tue 2nd May 2017 14:06 in reply to "RE[3]: it's all about tax"
Alfman Member since:
2011-01-28

judgen,

Not to be cynical but there is also the inflation tax that the US uses: 2362.6% is the cumulative inflation since 1913 (when the federal reserve was instituted to fight inflation and market downspirals)



Doesn't help that they took us off the gold standard in 1933 either, that was an effective control against inflation.



In many ways I wish we'd rethink macroeconomic banking. The banks get to create money out of thin air to loan it to consumers. They're supposed to pay interest for the privilege of "printing" money, but after multiple bailouts and years of low and even zero percent interests for the banks, it's very clear we've been subsidizing the banks even as they rewarded CEOs with millions of dollars in bonuses.

To the extent that everyone wants to argue these private companies are "too big to fail", why doesn't any politician do anything about it? (Yeah, it's a rhetorical question, taking on big money is political suicide.)

Reply Parent Score: 2