Companies Sitting On Cash, But, Not Hiring. Media Shocked!
Hidden within this Washington Post article is a warning to “Corporate America”: Obama is probably going to be coming after you in short order
Corporate America is hoarding a massive pile of cash. It just doesn’t want to spend it hiring anyone.
Way to start off on a truly negative note, WP.
Nonfinancial companies are sitting on $1.8 trillion in cash, roughly one-quarter more than at the beginning of the recession. And as several major firms report impressive earnings this week, the money continues to flow into firms’ coffers.
Yet all the good news from big business hasn’t translated into much promise for jobless Americans, leading many to wonder: If corporations are sitting on so much money, why aren’t they hiring more workers?
Certainly, the WP will tell everyone the reality of the situation, right?
The answer to that question has become a political flash point between the White House and big business groups such as the U.S. Chamber of Commerce, which held a jobs summit Wednesday and accused the Obama administration of dumping onerous regulations on businesses. That has created an environment of “uncertainty,” which is causing firms to hold back on hiring as the unemployment rate has hovered near 10 percent, the Chamber said.
The White House countered that companies are wary of hiring not because of new regulations but because they’re still waiting for consumer demand to return. The administration also claimed credit for 3.5 million jobs created by the stimulus bill from last year.
This is where people are making that gesture with their hands which means “give me more info.” Well, the won’t. Certainly, there is something to companies not wanting to hire until consumer demand returns. But, to have the Chambers’ position be about “uncertainty”, and leave it at that, is absurd and irresponsible. Though, it does protect Obama and the Democrats, which is what the media wants, from people understanding that the legislation passed by Democrats, such as the Health care travesty and financial reform, and want to pass, such as Cardcheck and cap and tax, not to mention what they won’t pass, namely, re-authorization of the 2001/2003 tax cuts, all contribute to this uncertainty. Companies just won’t hire beyond what they truly need when they have feckless incompetents passing and trying to pass burdensome legislation.
The Washington Post tries out a few other excuses, but, never does get around to wondering about Democrat policies. The second to last paragraph should be worrisome, though
Some analysts said it may be hard to create policy that compels companies to use some of their cash to hire workers. “CEOs don’t like taking risks. They kind of move in packs,” said Zachary Karabell, president of River Twice Research.
The very fact that the WP throws this paragraph and a follow up to end the story should make you wonder if they have heard something, or were just speculating based on their love of government forcing compliance.