How to create confidence

We’ve just heard that businesses in the United States have a ton of cash, but they don’t want to spend it. There’s too much “uncertainty” and they don’t have lot of “confidence.”

“A survey last month of more than 1,000 chief financial officers by Duke University and CFO magazine showed that nearly 60 percent of those executives don’t expect to bring their employment back to pre-recession levels until 2012 or later — even though they’re projecting a 12 percent rise in earnings and a 9 percent boost in capital spending over the next year.” http://www.washingtonpost.com/wp-dyn/content/article/2010/07/14/AR2010071405960.html

Well, just what is uncertainty, and a lack of confidence? Wouldn’t that be where one is afraid of what might happen; that things may not turn out well? So, isn’t that fear, and doesn’t that really mean that the CEOs and CFOs out there are scared?

They want the government to give them tax breaks (so they’d have more money not to spend on jobs?) and don’t want any regulations. That’s their prescription for bringing back confidence to the country.

I have an idea. Since they don’t think the government will help (don’t want the government to help), and the poor and unemployed people can’t create much confidence, maybe the companies should hire some people with all that money! You know, take a chance that if other people see that there are jobs and companies are hiring, then there will be more confidence and the market will continue to rise out of the recession. And people won’t be so afraid of everything.

Then they’d be taking things into their own hands, and the private sector would be the engine of grown and innovation. I think that’s what everyone wants. Why are they so scared to do the right thing for everyone and help us all out?

Originally posted on Tumblr July 18, 2010