Gillian Tett presents the facts and supposed implications of limited capex/long-term corporate investments (“Corporate America is failing to invest”, April 12). Not mentioned is the long-term role of the web on these circumstances.

Capex requires, among other things, confidence in pricing power. The web tends to diminish pricing power and is deflationary, allowing buyers to hunt worldwide for cheaper goods. Ergo, the web diminishes confidence in the pricing power necessary to justify capex, and that confidence inhibitor is not likely to change any time soon.

Roger W Kirby
New York, NY, US

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