Business sitting on $1.8 trillion in cash
If you want a reason why the economic recovery is coming along so slowly, businesses are sitting on cash because of new regulations being imposed by Congress and the Obama Administration:
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?
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.
Businesses, especially small businesses, are concerned deepy concerned about how ObamaCare is going to affect them and administration is going to do before the year is out. Remember, cap-and-trade is still out there.
Hear it from businesses yourself:
Hear it again: