Ummm yeah, the private sector is doing fine at making record profits and stockpiling cash!
Companies are just holding onto their cash instead of investing in research and development or hiring more employees instead of depending on increased productivity from you and me. American companies are hoarding “$2 trillion in cash — $1.4 trillion in the S&P’s top 20 alone” and that seems like enough money to develop new products of some sort or hire some people they’ve been waiting to replace or worse yet downsized. But no…instead American companies keep giving their 3 favorite excuses:
- There’s a lack of consumer demand to support increased production or expansion.
- They don’t know how the healthcare reform will affect their bottom line (well, we’ll know tomorrow)
- The country could fall back into recession.
There can’t be any demand if some people are unsure of their job security and other people are still looking for jobs. Also, people must have some disposable income because folks here in Ohio are clamoring to go to our new casinos.
As for the famed possibility of a double dip of recession (and not Graeter’s ice cream), it’s been nearly four years since I watched my 401k nose dive and economists keep talking about this double dip. For how long exactly are we supposed to allow our country to stagnate because we might have another recession? Also, wouldn’t it be better to earn money in the meantime and let that be a cushion during this hypothetical “next recession?”
The sad thing is American companies have money they could use to hire people, yet our cities and states are balancing their budgets on the backs of government workers. This includes law enforcement.
Early this month a sheriff deputy was attacked by one suspect while pursuing another suspect. According to Franklin County Sheriff Zach Scott in a story on 10TV News, this incident was possible due to “budget issues, [so] the number of deputies on the street have been limited, taking a while for backup to arrive.” That my friends is what limited government looks like!
Yet the business sector is doing fine with $2 trillion in the bank! Must be nice…