PPI’s popular summer policy brief, Investment Heroes, was picked up this week over at Forbes with analysis and commentary from Diana Carew. Carew explains how capital investments designed to increase efficiency still create jobs, points to foreign companies that would have made the list, and makes the case for a more positive view of Apple’s spending.
For all the talk about the trillions sitting on the balance sheets of the biggest U.S. companies, you might think that the S&P 500 is sitting on its hands and waiting for sunnier skies before investing capital.
The truth is rather different though, and a July report from the Progressive Policy Institute explains that capital investment, a critical means of growth for the economy, is hardly at a dead stop.
According to PPI, while the level of business investment remains below its 2007 peak, there are still companies shelling out hard-earned cash for new buildings, equipment and software. The think tank’s report lists 25 “Investment Heroes,” or companies that are pumping billions of dollars into the U.S. economy through their capital expenditures.
Looking over the list one thing becomes immediately clear: capital-intensive industries like telecom and energy are still spending. AT&T and Verizon Communications top PPI’s list, which drew on 2011 financial reports and regulatory filings by 150 of the biggest companies in the U.S. with $20.1 billion and $16.2 billion in capital expenditures respectively. Exxon Mobil comes in third, with$11.7 billion, followed by Wal-Mart ($8.2 billion) and Intel ($7.4 billion).
Read the entire story HERE.