- Sep 12, 2003
Channeling corporate cash and asset reserves into job creation.
-- TomU.S. commercial banks and large nonfinancial corporations have been carrying huge cash hoards and other liquid assets, totaling $1.4 trillion. At the same time, small businesses have been locked out of credit markets, preventing them from expanding. In "19 Million Jobs for U.S. Workers: The Impact of Channeling $1.4 Trillion in Excess Liquid Asset Holdings into Productive Investments," Robert Pollin, James Heintz, Heidi Garrett-Peltier and Jeannette Wicks-Lim of the Political Economy Research Institute at the University of Massachusetts Amherst examine the impact that mobilizing these excess liquid assets into productive investments could have on job creation. They find that if we moved those liquid assets into business expansions, U.S. employment could expand by about 19 million jobs by the end of 2014, with unemployment falling below 5 percent.