Time For Companies to Spend?
U.S. corporations are sitting on more than $1 trillion in cash, more than the government is spending on its massive 2009 federal stimulus package. But experts say that the key to any economic recovery — and of consumers’ efforts to climb out of debt — revolves around when companies will feel confident enough to open their wallets and hire more people, or give current employees a raise. Experts say the economy won’t really improve until employers — with about $1 trillion in cash reserves — begin spending that money and start hiring more workers. “They’re in such good shape, we think the country will avoid a double-dip recession,” says Mark Zandi, chief economist for Moody’s Economy.com. “But it doesn’t guarantee that companies will step up to the plate.” USA TODAY