Monday, December 7, 2009

MONEY MUST START TO FLOW BEFORE THE JOBS WILL GROW

Jobs, that is what this economy needs. So how do we create jobs? Well, we need to get the money flowing and businesses investing before there will be any meaningful jobs growth.

I read the first positive and thoughtful article on this subject recently. Corporate America's Huge Pile of Cash is an interesting read.

While, in my opinion, it leaves out a key risk factor which is the amount of uncertainty. Corporate executives will remain cautious with their cash if they continue to be concerned and uncertain of the outcome regarding taxes, health care costs, and inflation. However, at some point, these same executives will conclude that they can wait no longer. I am hopeful they will reach that conclusion soon. If they begin to spend the piles of cash they have accumulated, jobs will be created and we can begin a growth curve. Clearly, this will be more moderate and steady growth than in past recoveries. But growth is better than flat or decline.

To growth and job creation!
Until Next Time,
Gail