TigerHawk

TigerHawk: "We should rejoice when a large corporation returns profits to its stockholders. It is a sign that its management has humbly concluded that its owners would be better off investing money elsewhere. That means more and cheaper capital for existing and start-up businesses that need the money more and can prove it by paying a higher rate of return. Sure, some companies will shrink and eventually die. Good. They should die. Indeed, the critical insight of American capitalism is that the destruction of businesses, including large corporations, is usually a good thing in the long run. It liberates human, physical and financial capital to a higher use. The slow liquidation, break-up or quick slaughter of a large company clears away the forest canopy so that new businesses can sprout and grow big in its stead. The cone of the jack pine only opens and drops its seeds in the aftermath of a forest fire. The same is true for many of the new businesses that will create opportunities for Americans in the next generation."

I have used the forest fire analogy before (pre-blog) and I think it is a good one. Imagine an economy where businesses didn't die?