Do the businesses out there have the money to expand? Yes, they do. The desire is there as well. What business doesn't want to grow? So ... what's the problem? Why did you or someone in your family spend the week spinning their wheels looking for a job? What's holding things up?
Major corporations are sitting on $2 trillion dollars in cash right now.
Corporate profits are up.
Banks have another $1trillion in excess reserves
As National Review's economics editor Larry Kudlow points out, that's $3 trillion dollars being held in the private sector that could be financing the greatest job-creation and business growth. What's more .. this money could be financing growth in the private sector, not in government. So ... what's the problem?
Obama and the Democrats .. that's the problem.
Just a few things to consider:
This new so-called financial reform bill the Democrats have just passed calls for the creating of 243 new regulatory rule makings that will affect businesses across the country. Tell me .. are you going to take that cash out of your reserves and start spending before you have a clear understanding of what those new rules are going to be and how they are going to affect your business? There is the law of unintended consequences out there to deal with.
Then there's ObamaCare. Tax hikes and new regulations. Businesses are still trying to figure out how this is going to affect their bottom line. For instance ... do they keep their employee health care benefits or let the government just do it all?
Oh yeah .. then there's Cap and Tax. Obama is using a spill of oil in the Gulf of Mexico as a reason to pass a bill limiting carbon emissions from American businesses. This could be the largest tax increase in our nation's history. So ... draw that money out of reserves and stick your financial neck out while the future of Cap and Tax is still unclear?
America still the second highest corporate tax rate in the world! Maybe all that money these corporations are sitting on could be better invested overseas where the tax consequences aren't quite so harsh.
The fact is that businesses don't really understand what their relationship is going to be with the Imperial Federal Government in the years to come. Taxes going up? More regulations and bureaucrats to gum up the works? Will ObamaCare become the disaster that so many expect?
I don't care how much you love Barack Obama. You could think that he is just the most amazing and talented human being to ever walk the halls of the White House. The fact is that American business doesn't like this guy. He frightens them. Businessmen know of Obama's history of negative statements toward the free enterprise system. These men know that Obama once referred to them as "the enemy." Corporate America, as a matter of fact, has just recently begun to acknowledge their dislike of the current administration. Private small business owners ... where 80% of the jobs are ... have been wary of this guy since day one.
Do you want to see these businesses start hiring? Well .. that's going to take a while. The effects of all of these new laws and regulations are going to have to make themselves known. That won't happen in weeks or months. One thing would help .. and that would be for the voters to wake up and chase as many of these left wing anti-capitalists power-hungry Democrat politicians out of office as possible in November.
In the meantime ... if you're unemployed, and if you aren't looking for a government job ... and you vote Democrat in November .... Well, let's just say that the economy isn't your only problem. You may just flat-out be unemployable.
Oh .. and are you wondering why the Democrat's wonderful new financial overhaul bill doesn't apply to automobile dealers? One word .. Lobbyists. Didn't Obama tell us that lobbyists were going to be on the outs under his rule? Oh well .....