Skip to content

more zombie economy

August 1, 2013

Daily Finance posted an article from Business Insider by Henry Blodget. The original title in BI was “Here’s Who To Blame For America’s Lousy Economy…” but in DF: “Here’s Who’s To Blame For America’s Zombie Economy“. Blodget doesn’t use the word “zombie” in his article but does provide a variety of graphs that he says show:

In a period in which economic growth is weak (because corporations aren’t investing), the way to hit annual profit targets and get those bonuses is to “increase efficiency.” And “increasing efficiency,” everyone knows, is usually just a synonym for cutting costs, firing employees, and scrimping on investment. So big American corporations are maximizing their profits and letting mountains of cash build up on their balance sheets while, in the process, starving the economy and their employees of cash that would otherwise turbo-charge consumer spending and economic growth.

This recent round of zombie economy news was spurred by this weeks’ Fed meetings – see CNBC: “Zombie economy overshadows Fed meeting” by Patti Domm:

GDP data Wednesday is expected to show a slow-moving, zombie-like economy, as the Fed meets for a second day.

Domm previosly spurred zombie economy rhetoric last summer – See ZombieLaw: “The Zombie Economy Today” from July 6, 2012

patti domm cnbc zombie

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: