By MOTOKO RICH
The dismal state of the economy is the main reason many companies are reluctant to hire workers, and few executives are saying that President Obama’s jobs plan — while welcome — will change their minds any time soon.
That sentiment was echoed across numerous industries by executives in companies big and small on Friday, underscoring the challenge for the Obama administration as it tries to encourage hiring and perk up the moribund economy.
The plan failed to generate any optimism on Wall Street as the Standard & Poor’s 500-stock index and the Dow Jones industrial average each fell about 2.7 percent.
As President Obama faced an uphill battle in Congress to win support even for portions of the plan, many employers dismissed the notion that any particular tax break or incentive would be persuasive. Instead, they said they tended to hire more workers or expand when the economy improved.
Companies are focused on jittery consumer confidence, an unstable stock market, perceived obstacles to business expansion like government regulation and, above all, swings in demand for their products. [more]
right! tax cuts and incentives don't make them hire. they hire when they need more workers to fill rising orders for their products.
but the prez is hoping a new fiscal policy will put more cash in the hands of workers who will spend it, creating the demand that will lead to more hiring.
it may be a long, hard slog, but monetary policy won't do it. ben bernanke admits that, and he's a milton friedman monetarist.
unfortunately, even fiscal policy might not be enough without a foreclosure freeze and reenactment of glass-steagall.
No comments:
Post a Comment