Thursday, August 18, 2011

Guess who has 1.2 Trillion dollars and will not give it up. Big Business. Not only do they profit from tax breaks they are sitting on a lot of cash in their bank accounts. Our bloated politicians do nothing about it. Right now the President and Congress are all on vacation. Most Americans don’t have vacations. Many don’t have a job or savings.
All I can think of is the old movies staring Errol Flynn like in Robin Hood about the Middle Ages of the Castles all over Ireland and England and the poor villagers having nothing but being forced to give anything to the rich. Very similar to the debt problem and the burden of that debt falling on the shoulders of the poor.
Unemployment is high and wages are low. People with jobs are being let go because there are many out there willing to do the same job for less pay than you were receiving. Where is all the money? Don’t look to the government, Washington still doesn’t know how they are going to pay their bills like old ladies on Medicare and young soldiers that are willingly giving up body parts for this country. They should get paid too after all.
Take a good look at corporate America. Those bullies are sitting on piles of money. While millions of Americans have been looking for work, big businesses have been piling up the cash. Companies like Apple, General Electric and Pfizer. Just these giant companies alone have more than a giant amount of $1.2 Trillion dollars at their instant disposal, yes cash. That does not include property values or income. Cash they could spend tomorrow.
Steven Neil Kaplan an Economist of the University of Chicago Booth School of Business explains that it is an impressive accomplishment considering the depth of the recession. Companies reacted quickly and as the economy has come back profits have come back and that cash is sitting on company balance sheets. But since the economy is not moving at all now, companies are not spending. The cash is just sitting in their bank accounts.
What could companies do with $1.2 Trillion Dollars to save this country?
According to the Bureau of Economic Analysis:

1. Those companies alone could pay three years worth of rent for every American that rents their home.
2. They could buy every home that went into Foreclosure for one year.

3. They could fund the military of every NATO country combined for an entire year.

4. They could pay the bill every time a driver needs to fill up with a tank of gas for 3 years.

5. They could pay each and every of our dental bills for more than 10 years.
6. Enough money to give every family in America more than $10,000.00

Of course corporations will not do any of these things, they own the castle and the government is not offering any incentive for them to share their wealth. They don’t even have any incentive to create jobs anytime soon. Even with all their cash, these companies are nervous about the economy too.
There is so much uncertainty going on that the big profitable companies are deciding to be cautious and not invest or put their money anywhere. Sit on the cash. Until the economy really shows that it is turning around, nothing will change anytime soon. Then they will have the cash to make even more money!

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