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19 Million Jobs For U.S. Workers: The Impact Of Channeling $1.4 Trillion In Excess Liquid Asset Holdings Into Productive Investments

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  • Robert Pollin
  • James Heintz
  • Heidi Garrett-Peltier
  • Jeannette Wicks-Lim

Abstract

Robert Pollin, James Heintz, Heidi Garrett-Peltier and Jeannette Wicks-Lim show that since 2009, U.S. commercial banks and large nonfinancial corporations have been carrying huge cash hoards and other liquid assets, totaling $1.4 trillion. Small businesses, by contrast, have been locked out of credit markets. The authors examine the impact on job creation of mobilizing these excess liquid assets into productive investments, finding that U.S. employment could expand by about 19 million jobs by the end of 2014, with unemployment falling below 5 percent. The paper discusses policies to transform these hoards into job-generating investments, both for the national economy and, specifically, the Los Angeles and Seattle regions

Suggested Citation

  • Robert Pollin & James Heintz & Heidi Garrett-Peltier & Jeannette Wicks-Lim, 2011. "19 Million Jobs For U.S. Workers: The Impact Of Channeling $1.4 Trillion In Excess Liquid Asset Holdings Into Productive Investments," Published Studies peri_19million, Political Economy Research Institute, University of Massachusetts at Amherst.
    • Handle: RePEc:uma:perips:peri_19million
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    File URL: https://per.umass.edu/fileadmin/pdf/published_study/PERI_19Million.pdf
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    References listed on IDEAS

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    1. Robert Pollin & James Heintz, 2011. "How Wall Street Speculation is Driving Up Gasoline Prices Today," Research Briefs peri_afr_research_brief_j, Political Economy Research Institute, University of Massachusetts at Amherst.
    2. Ms. Selma Mahfouz & Mr. Richard Hemming & Mr. Michael Kell, 2002. "The Effectiveness of Fiscal Policy in Stimulating Economic Activity: A Review of the Literature," IMF Working Papers 2002/208, International Monetary Fund.
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    Cited by:

    1. Robert Pollin, 2012. "The great US liquidity trap of 2009–2011: are we stuck pushing on strings?," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(0), pages 55-76.
    2. Gerald Epstein, 2014. "Restructuring finance to promote productive employment," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 11(2), pages 161-170, September.
    3. Robert Pollin, 2012. "The Great U.S. Liquidity Trap of 2009-11: Are We Stuck Pushing on Strings?," Working Papers wp284, Political Economy Research Institute, University of Massachusetts at Amherst.

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