Yet all the good news from big business hasn't translated into much promise for jobless Americans, leading many to wonder: If corporations are sitting on so much money, why aren't they hiring more workers?Presumably, businesses are operating optimally. That they are making profits and "sitting on cash" at this optimal point should not imply in any way that the correct thing to do next is to invest that cash into more labor. It is quite possible that expansion would not make the businesses more money, and even if it did, more labor doesn't always follow an expansion. Corporations may invest more in capital during an expansion, and hire less labor.
The graph below plots the percentage of capacity in use over time (click here to enlarge)
Certainly, companies are not just "sitting" on cash. The economy is quickly climbing to use available capacity productively. Hiring more labor in order to please the unemployed may simply not be the most productive use of a firm's resources, nor the optimal path to growth.