Saturday, August 25, 2012

Mark Carney's corporate bashing

Peter Foster:
Bank of Canada governor Mark Carney must be congratulated for delivering an unwelcome message to the CAW. ... But then he had to spoil it. Perhaps he thought that since he was delivering inconvenient truths to labour, he should also do a bit of corporate bashing.
Mr. Carney suggested ... Canadian corporations were holding too much cash and failing to diversify into emerging markets. He opined that high cash holdings might be due to companies not knowing what to do with their profits, but being reluctant to return them to shareholders.  ...
... Attacking corporations is always appealing from a populist perspective, but it is also dangerous. It could easily feed into the notion that the Conservatives’ commendable reductions in corporate taxes have merely led to boosted profits being “socked away.” ...
... It was good to see so many prominent and successful Canadian companies — from Open Text to Suncor — prepared to put their head above the parapet and dare to tell Mr. Carney, subtly, that he should stick to his knitting.

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