“As Layoffs Rise, Stock Buybacks Consume Cash” (TIMES, 11/22/11)

     Though many U.S. corporations are swimming in cash, “they are neglecting to lay the foundation for future growth by expanding into new businesses or building new plants.”  Instead, they are laying off workers and using the money saved to buy back stock, thus guaranteeing the continued stagnation of the economy.

     Since business leaders are unwilling to invest in improving economic opportunities, the government has to come to the rescue as it did in the New Deal period.  The $447 billion jobs program put forth by President Obama is a solution to this problem.  It will put people back to work on necessary public works projects and circulate more money in a cash-starved environment.

     Then, these short-sighted business leaders might release the cash they are holding and use it in more imaginative ways; i.e., “investing in research, innovation and entrepreneurship.”


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