Why Corporate Cash Hoarding Is Starving the US Economy

US companies are sitting on over $3 trillion in cash, the highest share of corporate profits relative to GDP in decades. Lucas and Luna examine why businesses are hoarding rather than investing in plants, equipment, or higher wages. They unpack the record profit share of GDP — currently 12.8% — and how it's linked to weak capital expenditure, sluggish productivity growth, and a labor market that's tightening without seeing real wage acceleration. The hosts use recent data, including the Fed's interest on reserve balances rate at 3.65%, to explain why the incentive to hold cash remains strong. They also discuss the political pushback from lawmakers and what it would take to unlock corporate spending. The episode closes with a look at whether the current cycle is fundamentally different from past profit booms. #CorporateCashHoarding #RecordProfits #ProfitShareGDP #CapitalExpenditure #ProductivityGrowth #WageStagnation #FederalReserve #InterestOnReserves #USEconomy #BusinessInvestment #LaborMarket #ShareBuybacks #Dividends #TaxPolicy #Economics #FexingoBusiness #BusinessPodcast #May2026 Keep every episode free: buymeacoffee.com/fexingo