Companies Are Sitting On $500 Billion, Which Could Create 2.4 Million Jobs

Both Republicans and Democrats agree that real and sustained job growth has to come from the private sector. The problem is, the private sector isn't spending much -- and not because they don't have the money. U.S. corporations are sitting on over half a trillion dollars in cash reserves, according to a new study by University of Maryland economic researchers, and if all that capital was spent on projects, it would create 2.4 million jobs by 2014.

The idea of US companies "hoarding cash" has been a front page-splashing story for a while. Companies in Standard & Poor's 500-stock index have been "hoarding" over $1 trillion, according to the Federal Reserve figures, "shunning investment,""laying off workers," and "stiffing" the people, so that they can have a cozy nest egg, as they ride out these topsy turvy times.