Corporations have a 1 percent problem, too

The top 1 percent of corporations are doing great in this economy. But the other 99 percent? Not so much.

The top five companies control a third of cash reserves.
(Image credit: REUTERS/Chance Chan)

Usually when we use "corporations" and "inequality" in the same sentence, we're talking about how the latter benefits the former. We'll say that corporations and the people who run them are getting richer while everyone else is getting poorer. And there's a lot of truth to that. But it's also true that there's a big inequality problem among corporations.

For instance, you've probably heard about how corporations are hoarding well over a trillion in cash reserves that they're not using. What people mean by "cash reserves" here is money in business checking accounts, or in highly liquid assets like money market funds — basically the next best thing to having a pile of dollar bills lying around.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us