zonto wrote:Is it nonsense? Especially considering companies didn't even know if the tax breaks would continue until a couple weeks before the deadline? There is a lot of uncertainty and that is clearly adding to the unemployment rate.
I highly doubt that we would see such a high level of M&A activity at the end of last year if companies "don't need to expand." They bought companies instead of hiring workers to grow their businesses. Seems that firms that were focusing on financial services, corporations, etc. were doing just fine during that time. Bankruptcy law has also been solid.
If the corporations are making significant profits, why would they need to see if a tax break was going to happen or not in order to hire workers?
They hire in response to increased demand for whatever they're producing or selling.
EDIT: Plus, with high unemployment (possibly structural, which would exacerbate this) they can squeeze current employees that much harder, knowing that those people can't afford to lose their jobs.