The stockpiling of cash is troubling to some, who say that if companies keep hoarding money instead of investing in new facilities and products, it will put a lid on what the economy really needs to get going: new jobs. "Managers are being overly conservative until they're positive the crisis is over," says Kathleen Kahle, professor of finance at the University of Arizona. "They don't want to invest and add jobs, so they're delaying and don't want to be the first movers."
Meanwhile, there's concern companies have starved expansion so long, and focused merely on cutting costs to boost short-term profit, many might have difficultly boosting their top lines. "Reducing costs is a one-trick pony," says George Christy, principal of financial advisory firm Oakdale Advisors and author of Free Cash Flow. "You can only hold down headcount so much without hurting the quality of your products."
Like the Very Rich, Corporations
are sitting on shitloads of money, and they have absolutely NO intention of hiring additional workers, which makes the economy even worse since fewer workers means less money infused into the economy.
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