I am of the opinion (not wanting to put words in your fingers) that some bad actors on the capital side in the US are making things worse for themselves in the long run by looking only at the short run.
Yep. Politicians see only to the beginning of their next campaign, and quarterly reporting requires corporations to think only 90 days ahead.
It is my firm belief (and I’m not alone in that belief) that the US economy is suffering because of a lack of said velocity.
I haven’t looked at the velocity issue closely enough to comment. However, my sense is that’s probably true. The system often rewards those who put cash in mattresses.
Over the last 40+ years I’ve read about, watched and personally experienced from both sides of the pond the difference between US style capitalism and EU style social democracy, and also how they are diverging as the decades pass, as a citizen/resident and employee/employer/contractor/business owner.
Back when I was just starting out, I worked (‘83-ish) with a sales exec who was tasked with creating incentive programs for all other nations. At the time, the top marginal rate in Sweden was 93%. So, obviously, if a guy was way over quota, you didn’t give him cash; the governmetn would take almost all of it. Instead, you paid for his September vacation in a 5-star in Monaco for him and his family, because Sweden didn’t tax that.
Sweden’s top margginal rate is now 55%-ish, which tells me that like most European nations, they learned that stupidly high marginal rates are counterproductive to economic growth.
And, as you’re aware, most large corporations in Europe give their salespeople company cars, sometimes NICE company cars. Again, because generally speaking, that perk is not taxed in Europe.
So, my sense is that Europe has moved closer to us even more than we have moved towards them, from the standpoint of public taxation and the like.