So this is what a jobless recovery looks like?
According to Standard & Poor’s, 500 of the country’s biggest companies are sitting on $842 billion in cash. So why aren’t they hiring new employees, or ones to replace those they laid off during the downturn?
Theories abound and have been the subject of many articles. Companies would rather hoard cash to prop up their stock prices. Uncertainty about regulations coming out of Washington, particularly regarding health care and taxes, have made them reluctant to expand now. Perhaps they are simply waiting for signs of a stronger recovery before hiring. In fairness, why should companies bring in new workers only to have to let them go when the economy dips down again?
Of course, from my vantage point as a jobless person, I think greed is at work here. As long as the few workers they have left are doing the job and making a company profitable, well, why mess with a good thing? If companies can make more with fewer employees, they will do that for as long as they can.
At some point, however, overworked employees will begin to balk at doing too much for not much reward. If companies want to expand into new markets, products and services, eventually they must hire new workers to make that happen.
As long as companies refuse to hire new workers, their companies—and the economy—will stagnate.
You know I was reading on this a few months ago and a lot of what I was finding what pointed at the health care issue. This makes me SO angry to know that there is the opportunity put those of us out of work back into play and its not due to seeing how much money can be squeezed out. Similarly, I have found that since becoming unemployed I have become somewhat of a political atheist. I am certainly for everyone having adequate health care but how the government as prioritized things infuriates me. Let's face it, America doesn't work unless the people do and health care is easier to figure out when everyone is in a place of work and with a steady income.
ReplyDeleteThanks for posting this.