The mattress economy

During the Great Depression, supposedly millions of Americans, distrustful of banks--kept their cash inside their mattresses.

In Townhall today, Michael Barone argues that essentially the same thing is happening. Except it is businesses--you know, those things that create jobs--who are hoarding money.

Home mortgage interest rates are the lowest in history, but house sales are plunging. Banks can make money easily because of the Federal Reserve's low interest rates, but they're not making many loans. Major corporations are sitting on something like $2 trillion in cash, but they're not investing.

Unemployment is running at 10 percent, rounded off, for the 11th straight month, but few employers are hiring and a million people have stopped looking for work in the last year. Small-business hiring is at a nine-month low, and retail sales are tailing off.

Government policies designed to stimulate the economy seem to be having the opposite effect. Consumers aren't buying, businesses aren't hiring, and those fortunate enough to have some cash on hand don't seem to be investing.

This is the result when our nation's first anti-business administration is in charge. Busineses fear cap and trade, union card check, and tax increases. They believe it's time to hide in the mattress-bunker.

Will our ideologue president ever wise up?

Technorati tags: Barack Obama Obama government democrat economy politics news business card check cap and trade