bayst-asburgess-thumb-1.jpg
bayst-asburgess-thumb-1.jpg This article is more than 6 years old

Corporate Canada’s cash hoard grew by $9 billion in just 3 months

The amount of “dead money” held by Corporate Canada now stands at nearly $630 billion — up $9 billion in just three months, Statistics Canada reported Thursday. The National Balance Sheet Accounts, updated every quarter, shows private non-financial corporations increased their cash holdings from nearly $621 billion at the end of 2013 to nearly $630 billion […]

The amount of “dead money” held by Corporate Canada now stands at nearly $630 billion — up $9 billion in just three months, Statistics Canada reported Thursday.

The National Balance Sheet Accounts, updated every quarter, shows private non-financial corporations increased their cash holdings from nearly $621 billion at the end of 2013 to nearly $630 billion in the first quarter of 2014. Corporate Canada’s “cash hoard” remains larger than Canada’s national debt, Erin Weir, an economist with the United Steelworkers union, pointed out Thursday.

The new milestone comes two years after Mark Carney, Bank of Canada Governor at the time, scoldedcompanies for sitting on huge piles of “dead money.” Carney, now the Governor of the Bank of England, said the idle cash reserves should be invested productively or returned to investors.

Weir offered his own take on Thursday about the growing cash hoard.

“Private non-financial corporations in Canada have added nearly $100 billion of currency and deposits to their stockpile just since the end of 2012. This accumulation of dead money helps explain the lack of business investment despite record corporate profits. It casts serious doubt on the economic and social value of recent corporate tax cuts,” he said in a statement. 

Check it out:

 cash_stash.jpg

Photo: asburgessUsed under a Creative Commons BY 2.0 licence.

 

Help us protect Canadians by holding the powerful accountable.

Journalism is an important public service. That’s why PressProgress is prioritizing stories aimed at keeping Canadians safe and holding the powerful accountable during the coronavirus pandemic.

Please consider supporting our award-winning non-profit news organization so we can keep making a positive impact for Canadians.

 

Support Our Journalism
PressProgress
PressProgress is an award-winning non-profit news organization focused on uncovering and unpacking the news through original investigative and explanatory journalism.

Most Shared

thumb-2021-05-07 News

Police Departments Across Ontario Are Issuing Statements Rejecting Use of Doug Ford’s Controversial New Police Powers

Related Stories

News

Instagram Apologizes For Deleting Posts About Missing and Murdered Indigenous Women, Girls and Two-Spirit People

View the post
News

Disability Groups Say Ontario Government Did Not Consult Them on Life and Death COVID-19 ‘Triage’ Decisions

View the post
Explainer

How Federal Leadership Can Help Establish Important Social Programs and Health Reforms

View the post

Explainers

Politics & strategy

Tom Parkin

How Federal Leadership Can Help Establish Important Social Programs and Health Reforms

View the post
Power and democracy

Andrea Reimer

Why Powerful People Do Stupid Things

View the post
Work & rights

Liz Walker and Shanice Regis-Wilkins

What Anti-Worker Businesses Don’t Want You To Know About the Value of Unions

View the post