Limit Corporate Hoarding, Spur Hiring
Corporations are making record profits but they are not responding by correspondingly hiring more — instead they are simply stashing away more cash. Forcing companies to spend that cash would increase hiring and investments in research and development that advance new technologies.
American companies hold a record $1.6+ trillion — $1,600,000,000,000+ —in savings that they are hoarding.
The Adventures of Unemployed Man
NYT: Corporate profits up, personal incomes down
Trudeau on job creation.
there are almost 10 million people unemployed in the country — enough, if lined up shoulder to shoulder, to stretch across the continent.
Record corporate incomes are high, personal incomes are low and hiring is slow.
What we are seeing is the reversal of the American dream. One solution may be to limit the amount of cash that companies are allowed to keep on hand — or disenctivize corporate hoarding of cash through higher taxes — in order to encourage firms to spend down their cash and invest in the economy: in research, development and jobs.
Inaction combined with greater workplace efficiencies provided by technology may mean richer and richer companies hiring fewer and fewqer people — and a distopic future.
Companies shouldn't be compelled to hire people simply for the sake of hiring people — indeed, hiring more people can lead to better service and better technoloical advancements — but companies today don't feel compelled to hire so a government push is in order. For years, the unemployed have been told that companies are having tough times and they cannot hire. But it's bogus: Thanks to deregulation that in turn allowed for industry consolidation and decreased competition, companies are making more money than ever before and have little incentive to improve service or pay higher wages. Companies can afford to hire, they are collectively choosing not to do so. It's time to fix that.