By Linda D. Cavanaugh
Technology has been growing exponentially. Hard to believe that when some boomers were in school, yes even college, there were no personal calculators. The engineering guy or math nerd with the slide rule was the only one able to make even the simplest computations.
The play “The Pajama Game” was popular, and in it was the song “Seven and a Half Cents.” It was showing how even a small raise, a seemingly insignificant bit of money, could mount up and help the workers in a big way.
Media reports note that some 4,000 corporations are sitting on over $1.5 trillion in cash because they are unsure about the American economy — saving it to spend later in profitable ventures. The irony that this figure mirrors the multi-year $1.5 trillion budget cut to be carved out by the Congressional Super Committee is not lost on an educated, critically thinking American public.
The fact is that American taxpayers bailed out corporations “too big to fail” only to be “rewarded “ by them hoarding funds, hurling employees onto unemployment rolls, automating excessively and charging consumers high prices for their goods and services to boost profits.
In this economy, corporations continue to proffer the tired, flimsy excuse that their executives deserve lavish salaries and benefits to compensate for their “unique skills.” These are the same leaders choreographing the building and expansion of facilities abroad, while downsizing and abandoning their highly productive, skilled U.S. workforce in favor of foreign labor. When asked why they are failing to increase jobs and promote domestic economic development they, as reflected on Wall Street, act as skittish as someone frightened by a mouse. However, in this case, that person has the means to have the best mousetrap ever.
Taking a simple calculator, we find that multiplying $1.5 trillion by 7.5 cents gives us $112.5 billion — a tidy sum to directly fund about 2.25 million jobs at $50,000 each, for a year, or to fund the best endowed foundation in the nation. Just “seven and a half cents” — keeping the other 92.5.
In his inaugural address President John F. Kennedy said, “Ask not what your country can do for you. Ask what you can do for your country.” If not now, when? The old adage, if you’re not part of the solution, you’re part of the problem resonates here.
Certainly those 4,000 corporate giants should step up to strengthen their country, while also helping stabilize international finance. Corporations working together could transform this “miniscule” amount into a major kick-start for the U.S. economy. Just a few ideas for the foundation are to:
• Establish a nationwide job match system to employ individuals in challenging careers that are stable, pay well, and use of their unique talents, abilities and experience to the max;
• Initiate training programs for entry-level staff, and provide human resources training regarding fair benefits and fair treatment for all employees;
• Fund a low- or no-interest revolving loan fund for startups and small business improvements or expansion, including micro loans. As businesses repay the loans, the funds would be re-used;
• Assist under-employed college graduates, burdened with high interest commercial student loans by providing inexpensive educational loan insurance so banks would re-negotiate balances at low-interest rates requiring little or no collateral;
• Provide grants for paid, arts-related job creation in all areas (fine arts, performance, education, etc.)
In the end, consumers can either make or break a company. It doesn’t matter how much money companies have squirreled away if Americans choose not to buy their products or services. Consumers can make a conscious effort to patronize those corporations that exhibit courage, and take positive steps to kick-start the economy. Likewise, investors who prefer to support corporations with social consciences can also begin to re-evaluate their portfolios with that in mind.
Corporations must learn that their collective failure to act in the best interests of the U.S. has not gone unnoticed by 330 million countrymen who are consumers, stockholders, taxpayers and who vote. Americans are known for their patriotism, productivity, generosity, tenacity, innovation and cooperation. We expect no less from our politicians — and our business community.
For long-term economic stability, business must immediately take a responsive, pro-active role that will require paradigm shifts and sacrifices, as we all have had to accept. Let us lead by example, once again demonstrating the unity and spirit that truly makes the USA great.
Linda Cavanaugh is an economic development consultant. She is the former economic development coordinator for Farmington. Reach her at 860-674-9556.
