The Globe on Corporate Cash Hoards
Corporate Canada has tripled its cash stash in each of the last two decades. The following Statistics Canada figures are â€œCanadian currency and depositsâ€ plus â€œForeign currency and depositsâ€ for private non-financial corporations:
Second quarter of 1991: $54 billion
Second quarter of 2001: $157 billion
Second quarter of 2011: $477 billion
A policy implication of corporations stockpiling their incremental cash is that yet more no-strings-attached corporate tax cuts are unlikely to translate into higher investment.