There is inflation. The dollar is incredibly weak right now on currency markets, relative to other currencies. Businesses that are not already sitting on large piles of cash are bearing the brunt of inflation right now, as they get screwed between the rising costs paid to foreign suppliers and the stubbornly low prices that American domestic consumers can afford. The performance of the average American business has drastically decreased this past year, contributing to layoffs and making the problem worse. You don't see it in the stock market because the prices of stocks are being propped up by the Federal Reserve, but it's been an open discussion over the incredibly fast gains in the stock market over the last several months whether stock prices are coupled to corporate fundamentals or not.