[Jim in CT]

Originally Posted by JohnnyD

Exactly.

When the economy tanked, businesses were forced to check their books and cut the fat. They cut unprofitable programs, reduced (or froze) pay and benefits, laid off nonessential workers and developed ways to run more efficiently. Like you said, the businesses aren't going to spend money just because they have it. They aren't going to hire more people, even though they can afford to, unless those people will directly contribute to the bottom line and that is where the issue lies. Businesses effectively reduced their liabilities which has helped them have more money, but are still having difficulty with reliably increasing revenue. Month to month numbers are all over the place - housing sales are up, then down; consumer spending is up, then down. Until the volatility really stabilizes, businesses will maintain a wait-and-see approach.

My business is right in that same category. Fortunately most of our employees get their benefits from their spouse but if I have to start paying for health care at these inflated costs, people will get laid off. We've cut our expenses and developed ways to operate with fewer people. Yeah, it would be nice to hire at least another full-timer or two but it isn't worth it until the dust fully settles.

You own your own business? Then you really know what you're talking about. For me it's just theory, but you live it every day. Good luck!