IN this case, the sellers are corporations, and what they need to beware of is the reduced buying power of the middle class, which is stiffling the US economy.
Here are two charts showing how productivity has risen while wages /compensation has stayed flat
this is why the middle class hasn't increased their buying power, and why so many wealthy corporations are sitting on billions of un-invested dollars (more accurately, invested in low interest accounts rather than in creating businesses).
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From http://www.npr.org/2011/08/17/
139703989/companies-sit-on-
"At the end of last year, Google was sitting on nearly $35 billion in cash."
"In a recent report, Moody's said the 1,600-plus U.S.-based companies it rates had $1.2 trillion in cash at the end of 2010 — 11.2 percent more than they did a year earlier"
" But there's a more basic reason companies are hoarding money: The U.S. economy simply isn't growing enough."
"The labor market is weak, which hampers consumption, notes Charles Biderman, chief executive officer of the research firm TrimTabs. "So without growing income, where's the money to buy more stuff?"
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These assessments are based on economic facts, and they point to an easy solution to our economic problems. If the private sector won't pay higher wages, the government needs to step in and tax those record-setting profits and return money to the middle class.
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