Why is no one talking about the $4 trillion in cash corporate America had on the books in January 2020? I read the Bloomberg Open and Close newsletters every day. Did I miss or not understand some bit of news in February, March, and April?
The financial state and fate of the U.S. postal service is a hot topic in political forums this week (April 27 through May 1, 2020). It joins on-going questions about the economy, the physical and financial health of the U.S. workforce, the public health responses to the Coronavirus pandemic, when a vaccine will arrive, and when life, work, and the economy will return to normal. A question not on the table, though, is corporate America’s $4 trillion in cash. Unless, of course, all that cash just disappeared.
We ask whether the federal government should provide financial support (aka a bailout) to keep the USPS operating past September 2020. It’s a good question, but we get caught up in the debate. Some people believe that the Constitution requires that the government fund the USPS to keep it operating. Others think the government’s money (that is, our taxes) are better spent otherwise and believe privatizing does not violate the Constitution.
The USPS debate; the arguments between Congressional Republicans and Democrats about the Coronavirus stimulus package; the arguments between governors and President Trump about when and how to relax stay-at-home guidance; the militaristic actions of protestors in Michigan; and the rapid deterioration of the economy over the past three months have roiled our minds for weeks.
Sometimes, the questions we ask are like the distractions a magician uses to perform a trick.
The questions provide a distraction from the discomfort of social isolation, the financial fear, and the fear of a disease we don’t yet understand.
I tried to find a way out of the anxiety going round and round, faster and faster—I have never liked amusement park rides down monster-filled dark tunnels. I read the Book of Job. I wrote a list of my top ten reasons to appreciate social distancing.
But, my anxiety turned to anger as I looked at photographs of mass burials in New York and read stories about meat production employees packed into workplaces that killed them and drove the pandemic into their families and communities.
My anger turned to rage at photographs and stories of farmers destroying food—potatoes, chickens, milk—because it was produced for restaurants that are now closed. Ten thousand people in Texas were in line to get food from a pantry, and we can’t figure out the logistics of redirecting food from restaurant use to groceries and food banks. We can give the agriculture industry $23.5 billion, but we can’t figure out how to buy excess food and distribute it to people who need it.
Once I reinstated a calmer mind, I began to ask other questions. A little Googling produced interesting information, as I pointed out at the beginning:
In a Harvard Business Review article from January 17, 2020, I read that “U.S. non-financial corporations are sitting on just over $4 trillion dollars in cash, according to the latest Flow of Funds estimates…”
According to an article in the Washington Post on March 26, 2020, the coronavirus stimulus package is $2 trillion.
I wonder what corporations are doing with that $4 trillion in cash.
I’ve been quiet here, but that’s because I’ve been writing at Countable. Check it out. It’s a version of democracy in action and less of an echo chamber than other discussion forums.