This coming Monday marks the second Labor Day of the Obama administration, and the American work force has little to show for it other than higher unemployment, stagnant wages, last year's $1.4 trillion federal deficit, this year's $1.3 trillion deficit, and next year's anticipated $1 trillion-plus deficit. Oh, and a slew of new federal regulations and programs—like ObamaCare—that will make it even more expensive for businesses to retain current workers, much less create new jobs.
No wonder American confidence in the future is evaporating. And when confidence crumbles, consumers won't spend, lenders won't lend, investors won't invest, and businesses won't hire.
Today we see businesses husbanding cash rather than hiring. Nonfinancial S&P 500 companies are sitting on a record $837 billion. Personal savings are increasing dramatically, to over 6% of income today compared to barely 1% in 2005. Those small businesses still willing to take on more debt to expand are having tremendous difficulty finding credit.
Read it all.
Filed under: * Economics, Politics • Economy • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate
Posted September 2, 2010 at 7:30 am
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