Companies Reluctant to Hire

Right now, Corporate America is sitting on almost $1.8 trillion dollars in cash, but are reluctant to begin hiring. Why are companies refusing to hire more workers? The answer to that question has become a political flash point between the White House and big business groups such as the U.S. Chamber of Commerce, which held a jobs summit Wednesday and accused the Obama administration of dumping onerous regulations on businesses. This has created an environment of "uncertainty," which is causing firms to hold back on hiring as the unemployment rate has hovered near 10 percent, the Chamber said.

The White House counters that the refusal to hire is more to do with lack of consumer demand. Too often we look to Corporate America as a signal of when the economy is on the mend and showing life, but the real gauge of U.S. economic growth is...small business! Small business accounts for up to 80% of all jobs in the country, and right now small businesses across America are reeling from the punishment meted out by Washington and state governments across the nation.

The fear and uncertainty of what the future will bring has kept companies from hiring and reducing the high unemployment facing many Americans. Until Washington and state and local governments realize that small businesses are the economic engine of this country, the nation will continue to experience economic turmoil.