Corporate Spending Choices - Key Concept

Businesses make many spending choices every day. When corporations make profits, they can choose to share some of those profits with their workers as higher wages or the corporation can invest in capital and machinery. Every dollar spent as a worker's wage increase is one dollar less that can be invested in machinery or distributed to shareholders.

Transcript:

Corporate Spending Choices - Key Concept

Businesses make many spending choices every day. When businesses make profits, they can choose to share some of those profits with their workers in the form of higher wages, or they can invest in capital and machinery.

For example, every dollar spent on a worker's wage increase is one dollar less that can be invested in machinery, or distributed to shareholders.

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