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Coporations hording money--keeping Americans our of work?

Amer. corporations are holding an estimated 1.8 trillion (holding, hiding, sitting on--choose your verb). This is in contrast to high unemployment. These corporations have the money to hire employees --American employees with the skills they need to operate. Yet they don't. Why? It isn't illegal to sit on funds--even when the country you went to for financial help bailed you out. What a nice slap in the face, huh?

Read this short proposal and share your thoughts. Does this seem like a good policy to support? Is anyone else angry that the corporations that went to the Bush admin, hat in hand, are refusing to help the economy under the current administration? Any idea why?

http://www.solutionswithoutusdebt.com/Proposal%20IV%20US%20Companies%20Anti%20Hoarding%20Recession%20R.pdf

 
Youngwifey2

Asked by Youngwifey2 at 4:32 PM on Jul. 19, 2010 in Politics & Current Events

Level 17 (4,131 Credits)
This question is closed.
Answers (17)
  • The reason corporations are hoarding their money is they don't want things to turn around.  They want it to look dreary to the American people.  The are holding off until the November elections.  Big corp wants the republicans in charge so the can continue to what ever they want.  Private business do the most hiring.  Banks are not lending money to private businesses so that they can't hire people.  The republicans  allready  have stopped the Administration from making the banks lend to small business.There is reasons why they are hoarding it's called the November elections.

    mommom2000

    Answer by mommom2000 at 5:48 PM on Jul. 19, 2010

  • Oh, lord.
    Yet another bright idea which basically assumes that a person has no right to ownership of anything if "the collective" (i.e. the gov't or any other big group) says not.

    We want "corporations" to stop hoarding money? Then give them proof that they are not in imminent danger of suffering the same fate as several banks, car dealerships, and the other businesses which have been shafted by the gov't BREAKING THE LAW, violating the CONSTITUTION. The Progressives are moving very quickly, getting long-planned systems into place - knowing full well that it won't hold up in court, but that by the time the lawsuits GET TO COURT they might have rigged the judges.

    Every sane individual, business and corporation is going to hold tight to a $$ cushion in this lawless climate. No one would have believed that shareholders could be illegally stripped of their money in Chrysler the way the gov't did. That's just ONE example ...
    waldorfmom

    Answer by waldorfmom at 4:41 PM on Jul. 19, 2010

  • pswifey
    If the corporations are doing it legally according to the contracts written when they received the money, nothing can be done about it. You should be angry with the people who allowed that loophole in the contract. Maybe they are saving it to pay the new round of taxes coming in 2011.
    jewjewbee

    Answer by jewjewbee at 4:35 PM on Jul. 19, 2010

  • I am many others say this all the time. Corps don't hire people unless they are absolutely needed. They don't do it out of generosity, or because they feel they should, or to help the economy. They look at the bottom line. As they should, they are not in business to lose money. That is the exact reason they need to be regulated to ensure the people are protected.
    stacymomof2

    Answer by stacymomof2 at 4:42 PM on Jul. 19, 2010

  • I always thought in Econ101 this was called Capital Reserves....
    jewjewbee

    Answer by jewjewbee at 4:43 PM on Jul. 19, 2010

  • And pswifey, companies have stockholders to answer to. When the balance sheet looks good and lean, the likelihood of the stock price going up is better, and we want a good number on the big board right? If they dole out all the money you say they are hoarding the price drops, the holders get nervous, and the board drops a little bit. Can't have it both ways in the business world. A company can't be listed as stable/profitable when there are no reserves to fall back on.
    jewjewbee

    Answer by jewjewbee at 4:46 PM on Jul. 19, 2010

  • I would assume they are doing so, because of the up and coming taxes they are going to be paying.
    TBandNCmommy

    Answer by TBandNCmommy at 5:04 PM on Jul. 19, 2010

  • Not to mention the CEOs and head hanchos getting a $3Billion bonus but laying off the small guy...
    ABusyBee

    Answer by ABusyBee at 4:39 PM on Jul. 19, 2010

  • JewJew and Waldorf...as usual, you hit the nail on the head! Corporations will be "holding on" to their profits/revenues until after the mid-term elections. Depending how those turn out--you will either see MORE "hoarding" or MORE spending!

    In this capitalistic society, private businesses are still allowed to hold on to whatever they can, if it means not going belly up! MANY small businesses are doing the same--are they "evil" too for wanting to keep their livelihoods afloat?! We know a few contractors (roofers, home improvement, and landscapers) in our area that have closed up shop for the remainder of the year, as they have already maxed out their income bracket--earning just under $250k. After November, and whether or not Congress will extend Bush's tax cuts in January, is what they are "holding out" for!

    Successful businesses are successful because they understand basic economic principles and being resourceful!!
    LoriKeet

    Answer by LoriKeet at 5:35 PM on Jul. 19, 2010

  • *hoarding* and *out*
    Youngwifey2

    Comment by Youngwifey2 (original poster) at 4:33 PM on Jul. 19, 2010