Canada column for Sunday, Aug. 26/12
THE CANADIAN REPORT
(c) By Jim Fox
There’s too much “dead money” in Canada that should be working to improve the economy, the head of the country’s central bank says.
Company owners are sitting on piles of cash that could be spent on expanding businesses or at least be given back to shareholders, said Bank of Canada governor Mark Carney.
Speaking at a Canadian Auto Workers meeting, Carney said the level of caution by business owners “could be viewed as excessive.”
A study said Canadian businesses have set aside $526 billion in unused cash assets.
Business investment and consumer spending provide the “chief support” for the continuing economic recovery, he said.
Ongoing international concerns have led to a “less robust” business investment than what was previously expected, causing some of the caution.
Auto workers’ president Ken Lewenza called for some of that unused money to be reinvested into technology, the workplace, productivity and training.