There is a misnomer that all firms’ capital is going to buybacks because they are at a record. However, R&D as a percentage of GDP is at a record high.

One misnomer is the claim that stock buy backs are preventing investment. The only way you can believe this to be the case is if you selectively ignore the R&D data.

Investment in research and development has been relatively high this cycle. The combination of public and private investing in R&D hit a record high in Q2 2018 at 2.96%.

Productivity, Research & Development, GDP, Inflation & More

Submitted July 31, 2018 at 11:21PM by AlexPitti https://ift.tt/2Oy0a08