Woody2006 said:

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The idea that people are sitting on too much cash is such a nonsensical idea. There is a certain amount of cash in the system. If the people sitting on cash deploy it, then there will just be other people sitting on cash.

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Bernstein cited research by Goldman Sachs showing that business investment as a percentage of gross domestic product is in line with historical norms. "It's not that CapEx has shut down. It's that it's largely on it's pre-tax-cut trend, while buybacks show clear and obvious increases since the 2017 cuts," he said. "It's too soon to make any sort of final call on the tax cut's effect on business investment. But, at least so far, defenders of trickle-down once again have a lot of explaining to do."

Bernstein added: "I had on-the-record debates with the supporters of tax cuts who said buybacks aren't going to go up, it's all going to go into investments. Now they are saying, buybacks first, investment later. It's possible they will be proved right. But history is on my side."

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Cheerleaders for the tax cut argued that the heart of the law cutting and restructuring taxes for corporations would give the economy a positive bump, giving companies incentives to invest more, hire more workers and pay higher wages.
Skeptics said that the money companies saved through tax cuts would merely increase corporate profits, rather than trickling down to workers.
JPMorgan Chase analysts estimate that in the first half of 2018, about $270 billion in corporate profits previously held overseas were repatriated to the United States and spent as a result of changes to the tax code. Some 46 percent of that, JPMorgan Chase analysts said, was spent on $124 billion in stock buybacks.

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Business investment grew in the 5 percent range in 2017. In 2018, it grew at nearly 7 percent. This is a noticeable quickening. Yet investment growth has been strengtheningin nearly every quarter since the end of 2015, so we should be careful in assigning credit to the tax law too hastily. At the same time, it has probably had some impact.

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