Cramer is right for once, but for the wrong reason. He gives most of the credit to Apple CEO Tim Cook. But if President Trump had not fulfilled a campaign pledge to bring corporate dollars back to the United States via tax incentives, Cook would never have done this.
Also, I am leery that these dollar amounts, the promised jobs and reinvestments will take place as advertised. Call me a skeptic of corporate motives. But if even a fraction of it trickles down to the average man and woman in America, it will be an encouraging boon to the economy.
While CNBC’s Jim Cramer would be happy to talk about the tax benefits and windfall of bonuses that came from Washington’s new tax law, he’d rather talk about Apple.
“Apple, using some of the gigantic $252 billion cash hoard that it has overseas, announced [Wednesday] what I think is a modern-day Marshall Plan for the U.S. economy,” the “Mad Money” host said. “Apple committed to directly investing $350 billion into the United States over the next five years, including $38 billion in repatriation taxes.”
Cramer was referencing the United States’ 1948 initiative in which the Truman administration devoted $140 billion, adjusted for inflation, to rebuilding Western Europe after World War II.
In some ways, Apple CEO Tim Cook’s thinking was bigger than General George Marshall’s, Cramer argued after a phone conversation with Cook himself.
In his conversation with Cook, Cramer said the CEO emphasized the need for his company to be a leading corporate citizen and create jobs that will last through technological advances.
“Cook told me something else today that crystallizes what is happening in the stock market and in the economy,” the “Mad Money” host continued. “He said that ‘While some of these efforts were indeed in the works, Washington enabled most of this job-creating plan to occur by changing the tax code to allow companies to return capital to all stakeholders,‘ a series of reforms that Tim has championed for quite a long time.”
Of the $350 billion Cook’s company committed, $55 billion is set to be directly injected into the U.S. economy sometime in 2018.
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