Letters: Letters: The Reluctance to Invest

To the Editor:

Re “Deer in the Headlights, Financially Speaking” (Economic View, Oct. 9), in which Richard H. Thaler saw a paralysis in the reluctance of individuals and businesses to invest during these uncertain times:

The column did not discuss an important point in regard to the business side of the issue: Businesses hoard cash at their own peril. Unless they are among the very largest companies, they are essentially setting themselves up for leveraged buyouts by corporate raiders who will swoop in, relieve them of their cash and leave the bones for the vultures to pick over.

This doesn’t serve the best interests of stockholders, and it doesn’t bode well for millions of Americans who are employed by these companies. Nothing will stop the gold rush once it commences. I’m surprised it hasn’t started already. Eric P. Jorve

Roseville, Minn., Oct. 10

To the Editor:

Richard H. Thaler wants both businesses and individuals to drop their fears of investing in the future  — even suggesting that Americans spend money now in home improvements instead of keeping savings in Treasuries or money market accounts. He also lamented a recent survey in which many companies said they were waiting for economic uncertainty to decline before deploying their huge piles of cash.

Has he dismissed a possibility that many planners, treasurers and wealthier households are considering? After the plunge in stock prices during the summer, everyone seems to be worried about long-term high unemployment, lower wages and benefit cuts. So it is possible, if not likely, that the general price level will fall, or at least not rise so much as to make a delay in investing look unwise.

There is a term for this possible state of affairs. It is not paralysis, and it is not inaction. It’s deflation. Savita A. SahayShort Hills, N.J., Oct. 9

The Art of Food Ads

To the Editor:

“Grilled Chicken, That Temperamental Star” (Oct. 9), which examined the practice of tabletop directing for food commercials, hit home with me.

After years working as a prop person for various masters of the art, I wrote a play called “Tabletop” that won the 2001 Drama Desk award for best ensemble performance.

Theater asks an audience to identify with characters who in some sense feel as if their lives are at stake. While one may question many aspects of television commercials, there’s no doubt about the skill and determination of the people who create them or their importance to capitalist culture.

As an idealistic assistant observes in my play: “In the 13th century, we’d be carving gargoyles on a Gothic cathedral. Well, we don’t make such valuable stuff anymore. But at least we make memorable images.”

Rob Ackerman

Manhattan, Oct. 9

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