And companies are not investing domestically because they cite lack of demand. Why is there lack of demand? American workers can't afford much discretionary spending on what they're paid.
These same companies are sitting on trillions of dollars in cash. It's just sitting on the sidelines earning next to nothing. If they stopped hoarding that cash and gave their employees raises, several benefits would follow:
1) Americans could afford to buy American,
2) rising wages will stimulate inflation,
3) getting inflation back up to normal levels will make long-term debt more attractive, putting upward pressure on interest rates.
We'll get back to normal quicker if Big Business would just get off the dime. Government can't always solve all our economic problems. Sometimes the private sector has to step up to the plate and do the right thing, too.
No, no no. If every American doubled their salary today, they would still look for ways to save money. Walmart wouldn't lose one customer.
There are more things to spend money on today than there were let's say 40 years ago. 40 years ago, you had a color television set, an antenna, and if you were lucky, an antenna on your roof to get better reception. You had a stereo, furniture and one car for the family.
Look at all the crap we spend our money on today: cell phones for the family, cable or satellite television, computers, internet, video games, pay-per-view or NetFlix, satellite radio, fast food three times a week or more, a car for every member of the family with a drivers license.
These are considered necessities today, so it's not a wonder why we don't have much left after paying all these bills.