PatriotsReign

At a recent meeting with CEO's of several of the largest US corporations, president Obama said,

Obama meets with CEOs to get cash 'off the sidelines' - Dec. 15, 2010

Obama: Get corporate cash 'off the sidelines'

"NEW YORK (CNNMoney.com) -- President Obama met with 20 prominent CEOs Wednesday, saying the session focused on jobs and how to get companies to pump the billions of dollars they're holding into the economy.

"We focused on jobs and investment, and they [the CEOs] feel optimistic that, by working together, we can get some of that cash off the sidelines," Obama said as he walked back to the White House from the meeting."

What scares me is that even a novist economists knows corporations can't increase production until there is demand for their products. That means you don't hire new workers nor invest in capital expenditures unless they need to.

If my company's sales were down, we'd lay people off. That is what businesses are SUPPOSED to do. When demand increases above capacity, companies will hire & spend. There isn't any other way.

__________________
"No one walking this earth knows what is truly righteous"

chicowalker

That's not exactly true, PR. There's a different between current demand and anticipated demand. If you really want to grow, you better be ahead of demand.

apple strudel

PR has forgotten about how the tech boom worked.

Not like it matters. The gist of meetings like this is that the companies will have to get something in return from the government to open up their wallets, so it's not like it's a no win situation for the bug guys. (I had to really resist the "Is PR really this dumb?" angle here. Too easy.)

DarrylS

This whole situation reminds me of the days of Ronald Reagan, no one could get the hostages our of Iran, he becomes prez.. poof, they are freed. Later we find out he had negotiated prior to even being elected.

Consider Jan 20th there is a huge boom in hiring, as the companies come out and say because of the "new" economic climate they will all increase production.. and later we find out that this was a grand scheme by the real powerbrokers, who advised the corporatists to hold back on hiring until the Republicans controlled the house..

Strange, we will see.. been there done that.

__________________
"Being the best doesn't mean you always win. It just means you win more than anyone else".. tweet from Kurt Warner to Tom Brady.

Real World

The man has never run as much as a lemonade stand. The more and more he's speaks, the more that shows.

__________________

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

Harry Boy

He looks like what the Left Wing wanted, he talks pretty when he reads from his teleprompter, he is the Liberals "Diversity Poster Boy" they got what they wanted now the whole country has to pay for their Racist Bull*****.

__________________
Harry Boy (Genius)

In The Absence Of Law And Order Society Will Surely Destroy Itself

PatriotsReign

You're right, but you must be sure when that demand is coming. Whenever we're in a recession, we all know demand will increase "at some point". But good businesses don't try to get too far ahead of demand, they just want to meet it, not exceed it.

__________________
"No one walking this earth knows what is truly righteous"

PatriotsReign

Any of us can say whatever we want, but we may be wrong...

Whether or not our gov't gives incentives to big corp's to get them to hire and re-load is just doing the status quo. In other words, you're saying they may be trying to artificially inflate our economy instead of waiting for it to bottom out naturally.

We've had artificial stimulus' by the boatload over the past 20 years and what have we learned? We learned that eventually, it will spell disaster. We should all discourage our gov't from trying to stimulate our economy because we all now know where that leads.

__________________
"No one walking this earth knows what is truly righteous"

apple strudel

Uhhh... Uh, no. If it was status quo .gov would not be doing anything different. The game is to spur hiring and some spending to prevent a double dip recession and continue/begin recovery. Let's all bear in mind that corporations are sitting on trillions in cash spurred by historic profits made while laying millions of American workers off (isn't capitalism grand!). Sitting on that money is fostering stagnation. Except government isn't stimulating here, it would be private and corporate spending.

PR, you're tilting at windmills again.

Real World

Why would a company spend money, produce product, or hire workers when there isn't the demand to? The answer is they wouldn't. To PR's point about demand eventually increasing, what businesses will do is squeeze a higher rate of productivity from it's existing work force, and then hire if any recovery/increase in demand is sustained and warrants so. So when you begin to see the productivity index rising on a consistent and consecutive basis, then you'll see businesses begin to open up their wallets. Only then will companies spend money. Unless of course, you provide them with some sort of incentive to make capital improvements by way of tax deductions and such. Still, the returns from moves like that wouldn't be a silver bullet or anything.

__________________

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897