How to encourage companies to spend their cash for new hires.

News reports tell us that Corporations are sitting on lots of cash, and if only they hired people, the recession would be over.  So why don't they?  They say that it's the uncertainty of tax policies, blah, blah, blah.

Economists point out that the cost of equipment is dropping, whereas with employees, the costs are rising.  So if you were a businessperson, which would you do?  You'd buy the new computer/bulldozer/truck or microscope.

Princeton Prof. Alan Blinder points out that one way to deal with this problem is to allow companies a tax credit equivalent to the salary of every new person they hire.

But that idea hasn't gotten much traction in Congress because prospective employees don't have as much clout as corporate lobbyists who promote the benefits to companies of tax writeoffs for equipment purchases.