The amount of money parked in U.S. banks and financial institutions has risen to a two year high as banks hold back from lending to each other and from financing growth industries. Fears of contagion from Europe have now infected America inhibiting the development of new ideas and products.
Can America find its entrepreneurial spirit once again? Probably not, now that those business executives have found their way to the bailout window of the Federal Reserve Bank. Profits may be divided among the bosses but losses are likely to be socialized by government subsidy.
Equity investors are running scared, holding their breath during the stock market rallies. Any serious expansion of the labor force will require guarantees that will hold investors and companies free and clear of financial loss while they manage the wave of hiring.
Utilizing their experience and trained personnel, the dominant companies in each industry will be positioned to identify talented workers and management and break thru products while getting the political credit for employing the jobless on Uncle Sam’s credit card. And one of the rewards is likely to be a share in ownership of the subsidized company.
This is one jobs bill that will not hit a wall of opposition in the US Congress. It will satisfy the popular demand for a jobs employment bill. It will subsidize industry without government imposed management, it will take the political wind out of the Occupy Wall Street movement, it will have averted a Washington Spring demanding national reorganization toward economic justice and social equality.
And the money will still be out there, in the vault of the banks, while the US Treasury picks up the costs.