(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.
Bank of England policy maker Catherine Mann said the outlook for productivity gains in the U.S. after the pandemic is “not promising.”
Companies in the S&P 500 have $3.7 trillion in cash now, up from $2.2 trillion in 2019, and are channeling earnings into stock buybacks and M&A instead of investing for the future, Mann said at an event hosted by the American Economic Association.
“Basically we're looking at the bulk of the benefits currently gravitating towards financial uses, as opposed to supporting real discuss investment, and innovation,” said Mann, a former chief economist at Citibank and the Organization for Economic Cooperation & Development.
“So we look at projections for growth in potential output over the medium term for the United States, these are not promising,” she said at the event on Friday, adding that “heightening M&A is removing the spirit of competition.”
©2022 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
