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Is this what is at the heart of the reason for low business investment?
Is this what is at the heart of the reason for low business investment?
No, it's tangential. The reason businesses aren't investing is because they're seeing a shrinking market for their products. Which is due to the ongoing destruction of the middle class which comprises the market. Which is happening because businesses refuse to invest in America and think downsizing work force and moving all jobs to china is a great strategy.
What these executives don't see is that they're killing their companies by doing this. First, the Chinese factories will steal all designs, and as soon as they can will cut out the middle man and make the widgets themselves paying no mind to copyright or patent. This forces companies to come up with awesome new products constantly or they'll go out of business. Which is hard to do when your executives decided to outsource engineering and computer work to India, and those workers are neither ready nor motivated to do so. So in five years, the execs join the workers they screwed over in the unemployment line. Brilliant!
The reason businesses aren't investing is because they're seeing a shrinking market for their products.
That is what the article is saying. I.E. a lack of confidence.
As to off shoring, I'm not sure that is true, as the US is the biggest manufacturer in the world. They manufacture capital goods not so much consumer goods.
http://www.centralvalleybusinesstimes.com/stories/001/?ID=26291