It’s the Economy, Stupid! And Here’s How to Fix It

When I hear people discussing the future of the United States, I don’t often hear optimism.  We have amassed huge amounts of debt, our political leaders are children, our economic future looks bleak, and our country’s infrastructure is falling apart at the seams.  This list excludes a lot. 

Of course, what we really need is for our economy to start moving, and that means that corporations have to start hiring.  It isn’t as though they do not have the money to hire.  In May of this year, it was calculated that $1.6 trillion of corporate dollars were on the sidelines of the economy just sitting there, doing nothing.  What are they waiting for?  They are waiting for the economic outlook to improve.  Contrary to what many think, corporations do not hire after earning large profits; they hire when there’s a promise of future profits, and that means that there has to be demand.  Of course, demand is currently low and the prognosis for the future does not look too good.  So where is demand going to come from?

Is your economic outlook optimistic? Let the glass be your guide

If only we could fool those corporations into believing that demand is bound to pick up.  Then they would start hiring and demand would actually pick up!  Corporations, of course, won’t be fooled by false promises of projected growth coming from the White House or anybody else.  They have their noses grounded in logic, and they’ll keep their money on the sidelines until future demand actually looks plausible.

So we are stuck at a paradox.  Corporations, which are devotedly self-interested entities (not people), will not risk hiring until they see a promising tomorrow.  And there won’t be a promising tomorrow until corporations start hiring.  The White House is trying to interject with their new job’s package, and, perhaps if they get a huge package out there that can artificially increase demand, corporations will start hiring.  I, however, am very skeptical.  I am skeptical that they could even get a huge jobs packaged passed, and I am skeptical that corporations would follow the administration’s lead.  Corporations are not just cunning entities, they are also very fearful.  I do not think that many of them would trust a legislative increase in demand as being stable growth.  

While the situation appears to be bleak, there is an obvious solution that I haven’t heard anybody else mention.  If all the major corporations made an agreement to hire together, they would create an abundance of new jobs, meaning more customers, higher demand for products, and higher profit projections.  Unemployment goes down, stock prices go up, and everybody is happy.   

To me, it’s an empowering yet elegant solution.  As crazy as it sounds that corporations would actually work together, it is simply too much in everybody’s best interest to be tossed aside.  It would work too.  Things need to happen.  Hands need to be shaken.  The wheels must be put in motion! We do not need the government to fix this problem; we need corporate leaders to get off their butts and do what only they can do.

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