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When business meets politics…

When business meets politics…

… it’s never a smooth ride. In the US, big business is not happy with the Obama regime. Katherine Azmeh explains why in her view from the States.


July 14, 2010 1:14 by

To be fair, it’s the same old tug of war that the two party system always reveals. Democrats offer more social safety nets, but at a much higher price (read taxation – especially on big business and the wealthy). Republican administrations carry a considerably cheaper price tag (again, less tax burden on business and the wealthy), but with their diminished tax revenues, they just can’t offer the little guy all the same free perks – like federally funded programs such as health care.

But this time, the tug of war comes with a fat 9.5 percent unemployment rate, in a congressional election year, no less – and that’s not good news for democratic congressmen and women around the country.

The administration knows that job growth will come only from the private sector. And to that end, the administration wants to encourage hiring, expansion, and corporate spending. But they must also stay true to the democratic ethic that put their party in the White House – ensuring that they don’t “bargain too much away to corporate interests,” in the words of the New York Times.

Americans don’t seem to want encumbrances to business, like higher corporate taxes, but they voted for universal health care. They cry foul at more bloated legislative oversight, but demand better financial market regulations. The missing concept here seems to be that you can’t have it both ways.

The middle ground between stimulating business and enacting the kinds of protective legislation that ensures health care, protects the environment, and the small investor – these turn out to be compromises that voters signed up for when they checked Obama’s box on their ballots.

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