Sometimes a Strange Notion

Occasionally, an idea takes hold of me during the night that I can’t let go of it until I put it down on paper and see if it bears up under the stark scrutiny of day.

First, some background: This nocturnal notion has to do with the lack of jobs which is holding back the economic recovery. When the stimulus bill was passed, the amount of the stimulus should have been larger, many economists argue, but politically, with the Republicans saying no to everything, the idea of passing a stimulus bill that exceeded one trillion dollars was politically not feasible.

The stimulus helped, as we have pointed out here before, mainly by mitigating the impact on the unemployment rate. Without the stimulus, the amount of joblessness would have been twice what it is, although that is not a talking point in the Tea Party and the Republicans campaign literature. Unfortunately, neither does it seem to be part of the Democratic Party campaign arsenal either.

So, clearly, what the economy needs is a new jump start. But, from where and from whom? First, the government is stymied by the current political mood of the country, especially with the off-year election coming up. With the job situation and the economy so uncertain, American consumers are understandably wary and are sitting tight hoping the situation will improve and they can get back to shopping again, including getting in the market for new homes. Small mom-and-pop businesses are virtually in the same boat as consumers, with no room for new investments or creating new jobs. So, no hope there.

So, if logic serves me right, that leaves big business – major corporations and the like. What can they do? First of all, they are sitting on more that one trillion in cash — yes, trillion, not billion — yet unwilling to invest in new jobs and equipment because basically they don’t trust the current administration in Washington. They are afraid of what more may come down the pike by way of mandates – such as the hated health care reform legislation that will force them to provide health coverage for their employees. But, maybe they can get that repealed, they console themselves. Next, the outrage of financial regulatory reform which may put a crimp in their free-wheeling modus operandi, not to mention environmental legislation, which may force them to help the country break its addiction to foreign oil and help clean up the environment. And God knows what other socialist “job-killing” notions the Obama Administration has up its sleeves. So, they are in a wait-and-see mood, meanwhile spending massive sums of money on getting more business friendly Republican politicians back in power so they can conduct business as usual.

So, this is where my strange notion comes in. Let’s say — humor me for a moment while I unfold my fantasy — that some corporate leaders, inspired by the example of Bill Gates and Warren Buffett, wake up in the middle of the night and say to themselves: What if we invest some of this cash we are sitting on to create new jobs, jobs that we know we’ll need once the economy is back on its feet again? By doing so, we may be able to speed the economic recovery and help this country get back on its feet again.

Now that I am fully awake, I realize this nocturnal notion will not survive daylight scrutiny because it would never pass the litmus tests of the U.S Chamber of Commerce or the Business Roundtable. But, the nagging thought still persists: What if … just what if some major corporation could break the mold and break out of the pack? That’s the nice thing about fantasy — it removes us, if only temporarily, from the rigors of reality. It’s fun while it lasts. Now back to political reality.

Political reality which is playing out on the campaign trail as we speak declares that tax cuts for big business and the wealthy and a hands-off approach by government in terms of regulations are the only way to get the engine of the economy going again and help create new jobs. Just leave the market alone — it will right itself and all will be well throughout the land, they say in their soothing, siren voice.

I can’t help thinking of Lucy saying to Charlie Brown, I promise this time I will not pull back the football as I did so many times in the past. Promise, Charlie Brown. Honest, this time it will be different, she implores, tears flowing.

My new fantasy is that this time Charlie Brown will not buy it and refuse to go along with Lucy’s little game, but I fear there are way too many gullible Charlie Browns out there with notoriously short memories.

Gerald E. Lavey