Corporate Cash Holdings Have Grown 59 Percent Since 2008

The Wall Street Journal noted today that “non-financial companies in the Standard & Poor’s 500-stock index were holding $1.12 trillion in cash and short-term investments in their most recent reports, up 59% from $703 billion in the third quarter of 2008.” This data seems to fly in the face of conservatives who claim that corporations need more money (in the form of new tax breaks) in order to start hiring. Earlier this month, House Majority Leader Eric Cantor (R-VA) inadvertently made the progressive argument about corporate taxes, when he pointed out that pocketing money from tax savings is simply “what business does.” But maybe the corporations really need cash on hand to purchase necessities since, as Mitt Romney explained today, “corporations are people.”