Much has been made recently of the strained rapport between the Obama administration and corporate interests. Various talking heads and opportunistic Republicans have seized upon the trumped up “war” between the President and Big Business as the cause of everything from the consistently high unemployment rate (“corporations are afraid to hire in this era of policy uncertainty”), to hard times for small business (“Obama’s desire to let tax cuts for the wealthy expire harms entrepreneurship”), and even, to my incredulity, the fallout from the BP oil spill. For example, the UK’s new Business Secretary, Vince Cable has been quoted as saying of Obama’s rampant criticism of BP’s actions before, during, and after the deep well explosion, “the president talks in a cheap way about ‘kicking ass’. Whether or not the American president can kick our asses, he can certainly hurt our wallets and purses.”
Thank you Mr. Cable for your ever so enlightened inclusion of ladies’ “purses” in your corporate lament. We now see you for the truly forward thinking, fair-minded guy you are (cue laugh track).
Even the “liberal media” has enjoyed taking the issue apart. Sunday morning talk show Meet the Press featured a panel discussion this past weekend including New York Mayor Michael Bloomberg and former Federal Reserve Chairman Alan Greenspan. Greenspan, while rightly declaring the state of the economy to be “touch and go,” also added “The financial system is broke and I see we just stay where we are. There’s nothing out there that I can see which will alter the level of unemployment.”
As soon as the former Chairman uttered these words, I gleefully clapped my hands together and waited for host David Gregory to give him the what for. After all, that is what the incomparable and disinterested Tim Russert would have done. But the moment never arrived. How can Greenspan credulously state that he “sees nothing out there” to act as a positive force on current unemployment rates, at a time when Big Business is posting record profits, and holding onto wads of cash?
Companies like Adobe, AirTran, Honda – even the once shaky banks and mortgage lenders who needed a taxpayer bailout are suddenly right as rain. With all this good news, why isn’t a stronger bottom line leading to improvements for long struggling job seekers? As I perused The New York Times last week, suddenly the answer became clear:
Industries Find Surging Profits in Deeper Cuts
Writer Nelson D. Schwartz declares, “Many companies are focusing on cost-cutting to keep profits growing, but the benefits are mostly going to shareholders instead of the broader economy, as management conserves cash rather than bolstering hiring and production.” On so very many levels, this makes me ill. Seems to me that instead of focusing on the trumped up antagonism between Obama and corporations, we should be talking about how Fortune 500 establishments have become the tormenter of American families.
So to return to my earlier question, how did the rumor that the Obama administration is the enemy of business get started, and more importantly, why is it being perpetuated? From where I’m sitting, it seems that it’s never been a better time to be a CEO, if not a regular working stiff. In addition to the record profiteering, I don’t recall Obama slamming the door in the faces of banks, automakers and other industries that showed up on Capitol Hill with a tin cup begging for change.
Probing a little further, it seems that the convoluted health care and financial reform bills could be the tacit excuse. Big Business would have you believe that the runaway regulations being passed by the “socialist” President are the root cause of its persecution complex (see first paragraph – “corporations are afraid to hire in this era of policy uncertainty”).
Pardon my French, but what a bunch of horse shit. If anything, President Obama hasn’t done nearly enough to roll back the heady days of Clinton/Bush deregulation. I believe I am not alone in my frustration – having to listen to the tiny violin playing martyrdom of corporations, even as they pop champagne over record profits, commending themselves for delighting shareholders on the backs of the jobless masses.
If the Obama administration has been the arch nemesis of business, how much worse off would the nation be if he acted as a friend?