There is always a lot of political posturing when it comes to the topic of the economy. Needless to say with the current poor state of the economy, the political grandstanding has been amplified to new levels. Unfortunately, during tough economic times, it is often easier to play the blame game (and point fingers) than actually work the issue in a positive manner – especially during an election season.
The economy is bad and there is justification in people’s concerns. As a result, most politicians attempt to play on people’s fears by vilifying businesses. What is important to remember is that businesses are like animals. There are times when they run in packs and others when they may fight each other to win. But, businesses (like most animals) when chased or hunted will go into hiding.
There have been a lot of claims that businesses are sitting on significant amounts of liquid assets as opposed to reinvesting their assets which could aid in improving the economy. Likewise, with the unemployment rate steadily over 9% and the under-employed topping 20% there is much criticism that employers are not hiring at the rate that they should. Both claims although relatively valid are often misunderstood.
There is a large population of a corporation with significant amounts of assets that they would like to reinvest in the economy but don’t? Why is this? Because businesses are like animals……….they are in hiding as they are being chased by over-regulation and political aspirations. The lack of clarity in the economic/political landscape makes it impossible for strong viable corporations to reinvest their assets without potential risk to the corporation’s capital position.
Employees by definition are viewed both as assets and liabilities (costs). During tough economic times, businesses are often required to reduce the size of their workforce to effectively manage their costs. Although it could be argued that the economy is in a recession, there are many companies who have the capacity to hire additional staff but choose not to do so. Why is this? Because businesses are like animals……they are hiding as they are being chased by the unknown Healthcare Costs and regulations that could dramatically impact overall costs and must now be taken into consideration when hiring new employees.
The economy remains challenged. Unemployment remains steadily over 9%. There is more pessimism than ever before in the state of our economy and nation. With all that said, there is something positive. Businesses are like animals. They may run and hide when they are chased but when they see an opportunity, they cease it to survive. Corporations have assets they want to invest. Businesses have positions that they won’t hire candidates to fill. Once the vilification of Corporate America is completed (or at least exhausted), the business/animals will come out of hiding and our capitalistic economy will be back on track and flourishing.
Husband, father, coffee connoisseur and lover of all things hockey. At 51 I sometimes wonder have I done enough. I have been married to my best friend for 30 years. She knows all my faults and loves me anyway, As a father of “almost always” perfect boys, I am always surprised at what life has to offer. It is messy, scary, thrilling, and always fun.