Jun 14, 2010
Big companies claim they have no choice but to lay off some workers while speeding up those who remain. They say the bad economy and competition force them to do it.
The fact is, in the last year, U.S. companies increased their cash hoards by 25%, the biggest increase in a single year since the Federal Reserve began keeping records 60 years ago. These companies now hold two trillion dollars in cash ... and counting. Two trillion dollars is more than what the entire state of California, the biggest state in the country, produces in one year.
Why aren’t these companies using this money to invest in new production that will create more jobs? Because they are hoarding it to use speculating.