I found more evidence this week about the cause of the economy going into recession. More importantly, what it will take to get the economy going again.
Business is not investing. Even in my nonprofit sector, business organizations are not investing. They are hoarding (and sometimes losing) cash and assets. But they are not investing in their own future.
Visited a large successful association this week with a 90 million dollar budget. And 18 million in the bank. They desperately need to upgrade their software system. Yet the leadership is failing to invest, even when it is clearly in their own best financial interest.
So looking to consumers to spend more is not the answer. Government is spending, thank goodness, because business will not. But it will take business investing in its own future again to get the economy back on track.
do you think fed incentives will get businesses to invest? like the 30 percent tax credit for solar systems? so far, the stimulus hasn't felt very stimulating.
- jeff.
Posted by: jeff | April 22, 2009 at 08:12 PM