According to the latest daily statement from the U.S. Treasury, the government had an operating cash balance of $73.8 billion at the end of the day yesterday.
Apple’s last earnings report (PDF here) showed that the company had $76.2 billion in cash and marketable securities at the end of June.
The world’s largest tech company has more cash than the world’s largest sovereign government. That’s because Apple collects more money than it spends, while the U.S. government does not.
How would Apple solve the US debt crisis? According to David Weidner’s recent MarketWatch article he says:
“I’ve been covering Wall Street and corporate America for going on two decades, and if there’s anything I’ve learned it’s that there are really only two kinds of companies: those growing and those shrinking.
The U.S. government today has officially become the latter.
The difference between a growing business like Apple Inc. (NASDAQ:AAPL) and a shrinking one such as Eastman Kodak (NYSE:EK) has less to do with spending and revenue and than with psychology. Growing companies go through tough times. They adapt, and they’re poised to strike when conditions are right. They don’t stop innovating.
Defeated companies may be producing steady profits. But they lose their entrepreneurial spirit. They stop looking at the future. They get intimidated. They quit fighting. They look for a sale. They try to buy growth. They play not to lose — and end up losing anyway.
Which of those does Washington sound like?
So, what would happen if Apple had to tackle the debt crisis? First, it would eliminate spending that’s not working. Then it would make a commitment to spend if necessary. Third, it would look for ideas to spend on. Finally, it would call customers’ bluff. How much are you willing to pay for what the government gives you?
Ultimately, what’s happened to our government, lawmakers, elected officials and ourselves is that we’ve have taken on a mind-set of defeat. It doesn’t seem to matter that the business model — taxing for revenue, spending for growth — isn’t broken. After all, it’s working in Germany, Canada, India and China.”
