Can you please explain to me how weak demand and people not spending money benefits business? That was the premise of his argument, which you duly destroyed with your quoted article.
Weak demand can be caused by many factors, but at no point does people hoarding their cash help business prosper.
Yea I didn't say weak demand benefits corps, my point was the opposite. While large companies have done relatively ok and many of them have recovered a lot of their stock, profits aren't being driven across the board by strong growth. They still might have cash on hand, they still might be operating in the black, but there are ways to do that without driving greater YtY revenue increases, namely laying off employees, or in the case of large corporations that tend to have more inefficiency and more spending, they just cut stuff and tighten everyone's budgets. They don't spend at the levels they had previously been spending and they won't until the demand and growth and revenue side of their equation recovers.
My musing was that if we are going to deal with the deficit, and new taxes are coming, is it so unthinkable to imagine that some corporations might find themselves worse off if they saw no tax increases, but their clients got hit with one and the demand for their products fell even further as a result? Might one of these companies see the benefit of some sort of corporate tax if their buyers were to escape a tax increase?
Do I think many companies would ultimately make the trade? Probably not. But I enjoyed the little temper tantrum it caused here.