American companies, on average, are making record profits.
They have trimmed their workforce to the bare bones and many employees are working over and beyond what is expected of them – sometimes because they are afraid of losing their jobs.
Profits are up, dividends are up, and stock prices are up as well.
If this is the case, why aren´t companies hiring?<br><br>I have a simplistic view of this – some would find my thoughts and suggestions foolish – to say the least, but here goes….
Many of the American companies that are enjoying record profits have put off major equipment purchases or upgrades. Some have deferred costly projects for reasons, which are beyond me.
A couple of years ago I saw a wonderful movie titled “Pay it Forward”. In a nutshell, a young boy decided that if he did three good deeds for someone and they in turn could pay it forward, then positive change could occur and it would make the world a better place.
I propose something similar – I suggest that companies “Hire it Forward”.
By that, I mean some of these companies that are enjoying record profits could hire “x” number of workers – depending on their financials – to work on some of the projects that have been deferred – maybe upgrading facilities or equipment, maybe increasing charitable contributions such as “Habitat for Humanity”, or simply adding a few workers to each shift.
By doing this, a few more people will have regular paychecks – to keep them afloat, to purchase goods and services, to make repairs or renovations – which in turn will put other companies, large and small, in positions to hire as well.
Banks could get into the game by loosening the reins on loans for businesses – which in turn, will help businesses expand and that will result in additional hiring.
This concept could have a snowballing effect across all sectors of our economy. If this happened gradually it would not result in inflation – housing sales would increase but at a steady rate, which would result in sales of new appliances, carpeting, furniture and draperies. Others would choose to do remodeling projects that they have put off – small business would benefit and they would hire contractors such as electricians, carpenters, roofers, and the like.
This concept is so simple it is mind-boggling why it is not being encouraged across the board.
Corporations should not be looking for additional tax breaks, nor should they be breaking the backs of their existing workforce by demanding record hours and productivity.
These companies started here from scratch and they grew and prospered on the backs of the American workers. To simply throw American workers aside for the benefit of their bottom line is being shortsighted.
I understand that if companies originally were American and now are multi-national, there must be some product development and manufacturing overseas as well, but their core business should be here if they expect Americans to buy their products. In closing, if you have not seen the movie, “Pay It Forward” – please rent it, buy it used, or buy it new online or at a store that sells DVD´s. It is not yet available on Blue-Ray. Hire it Forward could and will work if companies choose to give it a chance.