Despite soaring profits, U.S. companies now reinvest only 12 cents per dollar, down from 25 cents in 1975. An economist explains why excess capacity is more important than tax rates in explaining business investment decisions:


The Conversation
Why aren’t companies speeding up investment? A new theory offers an answer to an economic paradox
The pace of US business investment has fallen by about 50% over the past 50 years. Idle capacity, not cautious executives, explains the decline, re...





