Charlie Rose is an interviewer who usually asks people he is interviewing hard ball questions like, “What is your favorite color?”
In any event, he asked Mitt Romney a very pertinent question in this week’s Business Week. And Mitt’s answer was absolutely perfect. Here is the exchange.
“Charlie: Corporate America is sitting on a lot of cash. Why isn’t it spending it on inventory and entrepreneurial efforts that would create jobs?
Mitt: That question is asked by the President from time to time. And anyone in the business world chuckles when they hear it because it points out just how far removed President Obama is from understanding how the economy works.
Businesses don’t build inventory simply because they have cash. Businesses build inventory because they have customers demanding products.
Businesses don’t hire people because they have cash. Businesses hire because they have customers demanding services and products.”
Now if only those clown economists that Obama has surrounded himself understood this simple fact of life we actually might make some progress ending this Contraction and starting a new Expansion. Anybody have an idea how to get that across?
P.S. If you have any questions about how the economy works, you can find the answers in The Great Recession Conspiracy. It is not complicated.