Shocker: Big Business afraid to spend cash

| July 15, 2010

Last month I wrote that Big Business is afraid to hire new employees because of the climate Washington has created in the business world. Today, the Washington Post announces that Big Business is sitting on a huge mound of cash – pretty much because of the reasons I mentioned in the earlier post;

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.

The White House countered that companies are wary of hiring not because of new regulations but because they’re still waiting for consumer demand to return. The administration also claimed credit for 3.5 million jobs created by the stimulus bill from last year.

Big Business is waiting for those taxes to hit on January 1st. They’re also waiting for the new higher healthcare premiums that they’ll have to pay for their employees. And who knows what else will be streaming down the pike when the Democrats lose in November and they only have a month to jam through more anti-prosperity legislation through to the President’s desk.

As for those three million jobs the White House claims they’ve created, the Wall Street Journal says this;

This is called a counterfactual: a what would have happened scenario that can’t be refuted. What we do know is what White House economists at the time said would happen if the stimulus didn’t pass. They said the unemployment rate would peak at 9% without the stimulus (there’s your counterfactual) and that with the stimulus the rate would stay at 8% or below. (See the nearby chart.) In other words, today there are 700,000 fewer jobs than Ms. Romer predicted we would have if we had done nothing at all. If this is a job creation success, what does failure look like?

That’s what I’m thinking.

Category: Barack Obama/Joe Biden, Economy

Comments (16)

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  1. Just one more shining example, to be held on high, of how badly the Progressives and the present administration, have no concern about the future of working taxpayers.
    With the slackers realizing that to vote against the present administration is a vote to make them get to work, we can be sure that many more votes will be coming their way. Think Amnesty for criminal Illegal Immigrants, Allowing unfettered imigration of Iraqis, even with no skills, Puerto Rico Statehood, and any of the other dozens of ways that the gummint, (spell that “Taxpayers”), will support sorry assed lazy bastards and bastardettes; and we have the make up of the voting future. Even worse that the kool-aders who elected the inexperienced, under qualified, arrogant, mulatto in chief.

  2. Joe says:

    Still have a huge hangover from the free market fundamentalist Bush years, and it will take a long time to recover from it. No one can wave a magic wand and undo the damage. You guys are a bunch of patsies for big business, parrot the party line. They have you right where they want you, suckers….

  3. OldTrooper says:

    Yeah, Joe, and you’re a slave to Marxist ideals, which make people equal…..equally miserable. Don’t forget that big business employs a lot of people, who pay taxes, so others, like yourself, can leech off of everyone else.

  4. PintoNag says:

    Big Business has it’s abuses. So does the federal regulation of markets. Both (big business and federal regulation of business)are necessary; both must be watched and reined up short when they begin to abuse their power. Attempting to argue liberal/conservative or democrate/republican in this is off the mark; market forces vs. abuse /manipulation of those forces might be more accurate. I am no expert when it comes to economics, but I would think a little more common sense might do a lot of good here.

  5. NHSparky says:

    Joe–please show me ONE example of ANYONE spending themselves out of debt.

    If Obama were an NFL coach, he’d be talking it up after an 0-16 season, explaining that had he NOT been coach, those losses would have been by even larger margins.

  6. defendUSA says:

    Joe…STFU already about who screwed up and gave you a hangover.

    How many times have I heard “I will not rest,” or We will not rest” from the Pied Piper- and nothing but bigger gov’t has been his answer…borrowing what *I* a taxpayer cannot afford
    and how many more mother fucking times will I have to hear that this was all Bush from the likes of the idiots like you?

    Collective anything equals collective *Punishment* for all yet it escapes people like you because you make your reality fit by blocking out facts and such that the rest of see as plain as day.

    So Joe…answer this:
    What administration started the CRA?
    What administration bolstered it?
    What administration tried to stop the real estate bust?
    How many people owned houses that shouldn’t have as a result of such policy?
    Which President attempted to show some bipartisanship during his tenure, but now continually gets raked and stabbed for it?
    And best of all, which administration thinks giving money to those who already blew it is going to solve the problems we now face with the recession that isn’t over?

    What happens when all that extra printing of money is chasing too few of the goods, Joe? Are you going to be able to go to your neighbor who has prepared for hyperinflation for help?

    Here’s a hint: Don’t go asking for his help or his food unless you’ll have something to contribute because if it were my door, I would laugh in your face, tell you I told you so, and then maybe toss you a piece of bread.

  7. Junior AG says:

    Psst, Joe, how come you republicrats & demicans alike won’t touch the idea of auditing the Fed with a 10 foot pole? It’s the Fed, not big business that got us into this mess.

  8. NHSparky says:

    “I will not rest…” Well, after another round of golf, maybe…

    “We will not rest…” After my next vacation to Maine this weekend.

    18 months, and he’s played more golf and taken more vacations that Bush did in 8 years. Give me a fuckin break already.

  9. Joe says:

    Take some ownership of the problem you cowardly conservatives. Bush and Co. totally f**ked up the world economy thru many of their policies and their lack of oversight. Now you try and use their complete failure to gain political points. Free market fundamentalism is dead, thank goodness.

  10. Joe:
    Your comment #9 was typical uneducated mish mash. You and yours continually say that Bush and Co, did this or that without stating exactly what this or that was. And similarly, you don’t offer anything to back up your lunatic rant.
    One more time, as Defend USA asked:
    “So Joe…answer this:
    What administration started the CRA?
    What administration bolstered it?
    What administration tried to stop the real estate bust?
    How many people owned houses that shouldn’t have as a result of such policy?
    Which President attempted to show some bipartisanship during his tenure, but now continually gets raked and stabbed for it?
    And best of all, which administration thinks giving money to those who already blew it is going to solve the problems we now face with the recession that isn’t over?

  11. NHSparky says:

    Notice how quickly the liberals abandon the “Bush deficits” and “Bush debt” when it’s pointed out to them that Obama has run up the debt more in 18 MONTHS than Bush did in 8 YEARS, the last 2 of those under a Democrat-controlled Congress. Joe can’t tell you what Booooosssshhhhh did, because he doesn’t know. All he can do is parrot talking points.

  12. Joe says:

    Yeah, he ran up more debt to attempt to fix a little thing called Bush’s global meltdown. When a patient in the hospital needs lifesaving treatment, you give him the care he needs to keep him alive NOW, and when he had stabilized, you start paying down the hospital bill. Having a small national debt isn’t much good if the nation itself has imploded….

  13. NHSparky says:

    Bush’s global meltdown…now what would that have been caused by, pray tell Joe? Could it be that CRA forced (yes, FORCED) banks to give mortgage loans to people who couldn’t qualify to buy a used friggin car? I was in CA at the time and saw many people with grossly inflated income statements buying homes they could never have afforded in a million years–think $30K incomes buying $750-800K homes. They couldn’t make the TAX bills, let alone the $5k/month house payments when the ARM readjusted. So who actually called the goverment out on this–you know, when Bwaney Fwank said that, “Freddie and Fannie are basically sound…” well, at least while his butt-buddy boyfriend was running the place, right?

    Oh, and having a HUGE national debt is no good when even the other socialist countries won’t go along with your plans. Porkulus did NOTHING to recover the economy. It was a payoff to state/muni employee unions, and little more. Please show me where the $800 BILLION spent so far has helped anyone not in a union (you know, us “little people”.)

    And quit mainlining the KoolAid already.

  14. UpNorth says:

    Sparky, don’t be so hard on the kool-aid drinker, he can’t help himself. He bought the dope in chains thing back before the election, and he’s totally invested in it, now.
    The Pres was in Holland, Mi. yesterday for the ground-breaking at the LG Chem plant, which will make batteries for the Chevy Volt and Ford Fusion electrics. LG is spending $300M to build the plant, and it’ll create about 300 jobs. With the Stimulus money they got, and the state and local tax breaks, it’s costing us $300 Million to buy 300 jobs. Wonder how much the next battery plant will cost us?
    And does anyone wanna take bets that the “jobs” that are just a dream right now, aren’t being counted as “stimulus jobs created”?

  15. NHSparky says:

    I look at it another way–Cash for Clunkers turned into a $3 Billion-plus “gimme” program that took cars which people COULD afford or were paid for and traded them in for ones which a lot of them can’t.

    BILLIONS has been spent on keeping bad mortgages afloat, and the end result? Over half of them default again anyway. I have a better idea. Cut my taxes, cut corporate taxes (and don’t kid yourself, Joe–no company pays taxes–they just collect them) and encourage more development of industry and business at HOME, rather than outsourcind all those wonderful windmills to China, et al. Think that’ll help more than jacking up my taxes to 35 percent?

  16. Athena says:

    Dear Joe,
    We do not now, and have never, lived under a FREE MARKET economy. In a true FME, there would be no bailouts, nor Freddie Mac/Mae shenanigans because the market would not be distorted by the politically correct machinations of politicians.