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.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.