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> US companies aren't spending because they don't want to spend. They aren't hiring because they are productive enough and are profitable enough without hiring.
by nhebb 15y ago
> US companies aren't spending because they don't want to spend. They aren't hiring because they are productive enough and are profitable enough without hiring.
Companies spend more and hire more when it's necessary to meet additional demand. If there is no additional demand, then they don't. It's not because they don't want to spend or are content with existing profits, it's because consumer demand is currently very weak. With 40% of US mortgages underwater, it's going to take a while before consumer demand strengthens again.
- TallTalesOrTrue 15y agoAnd the consumer demand is very directly influenced by the job market. With so many people out of work. Many of us who do have jobs are cautious to not spend beyond our means. Its a vicious circle. Of course the goal of a public company to make money I can't blame these guys to hoarde all the money they can. Thats what their shareholders and directors demand.