Kappa Search | Private Sector Spending is Key to Recovery
Posted by Mike Costello on Fri, Jul 09, 2010 @ 11:54 AM
If the tenuous global economic recovery is going to sustain or even accelerate, a spending increase from the private sector is necessary. Lack of confidence in the recovery, tighter lending and limited public policy visibility have caused companies to hoard cash, even with the current paltry yields in money markets, bonds and bills. But with households saving more and local, state and federal governments drowning in debt, private sector participation is the only solution to a potential double-dip recession. This can be accomplished by capital spending, inventory builds and most importantly hiring employees. The ripple effect will allow governments to scale back their borrowing and balance sheet manipulation. Ironically, the status quo will produce a system where corporate surpluses fund government deficits as companies and their employees get banged with tax increases in all forms.
Kappa Search Inc., a Chicago employment agency, has been in business since 1992 and has weathered three recessions. This last recession was the harshest and deepest from an employment standpoint. Although the current market for permanent jobs is far from ideal, we are witnessing slow growth in most major markets with the Chicago area lagging to a degree. Contract staffing is up sharply due to economic uncertainty.