Quote:
Originally Posted by Chicks
Hedge fund billionaire Howard Marks is throwing cold water on the GOP tax law
https://finance.yahoo.com/news/hedge...211040536.html
“So call it a gift to the corporate sector if you want, but I think it's unlikely to be much of a job-creator or long-term boon for the American middle class”
"We've seen a number of companies give raises or bonuses following the enactment of the tax law, but I doubt it was done out of generosity," Marks wrote.
He says there's every reason to believe that most of the corporate tax benefit will be used to "enhance credit ratings, fatten dividend payments, and finance stock buybacks."
All of that is fine and well, but those weren't the rationales Republicans gave for passing the tax plan, according to Marks.
"Instead, it was billed as a job-creator," he wrote. "With unemployment already below average, many CEOs tell me they're hamstrung by a scarcity of qualified workers. So who will fill the new jobs if corporations expand in the US? And if workers aren't available, will new plants (and jobs) really be created?"
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Well no shit Sherlock. Any increase in wages would be done only with a solid business case supporting it. Businesses are not likely to make their business case public, but the most likely reason would be that wage increases / bonuses, investments, etc., are part of forward-looking strategies to maintain competitive wages and reduce the risk of employee turnover heading into a tightening job market and sustain anticipated growth.
And, to me, its HILARIOUS to see high workforce utilization / lowering unemployment to be spun as if its going an issue that will be worsened by a corporate tax cut, as if additional job opportunities and economic growth was some kind of "problem".
