Things that $31.97 Billion Dollars Could Fix — Other than an IPhone Screen
Apple is a trillion dollar company!?! Who could have seen this coming other than speculators, mathematicians and probably just about anyone who you asked on the street. Ask those same people how much cash Apple has sitting in the bank and the consensus is almost certainly going to be “alot”.
Why is it just sitting there though? Is it invested? Is it in bonds or being partitioned out for more R&D- they just built a new headquarters that will certainly create an economy all around it, what else could they need cash for. Robot Steve Jobs won’t come cheap I know but there must be some purpose t to this cash, right?
The only purpose to this cash is that it is so cheap. Debt is cheaper to have than cash right now, but Apple doesn’t deal in debt (their consumers do though, raise your hand if you’re still making payments on an IPhone). That cash should be used in the economy — no more share buyback programs, extra bonuses or “secret research projects” that never amount to anything. Buy up municipal bonds, invest in your city, provide benefits to more than just your engineers. That cash can be put to use in this economy, it needs to be put to use in this economy.
Apple is an easy target — arrows have been launched at apples for practice for centuries, this article is no different. I’m taking aim at the biggest broadest company and strongest brand the world has ever seen because it provides such contrast. They don’t carry much debt, they have lots of cash and they do well enough for their employees but many other companies don’t. They hold that cash in a vice grip.
Wages are stagnant because companies feel they must be prepared for the next recession. Teams are kept lean because what if the recession hits and they have to fire half of the team?
This cash on the hands of companies doesn’t need to linger- or if it is allowed to linger, it should be taxed like mad. It should be used to invest in your employees and your communities. Businesses should be filling potholes or demanding that the city fill them, not demanding for a bigger tax break just to hire a few minimum wage workers. The world is twisted up in knots, this one has a simple Gordian solution — cut the crap and spread the cash.