Tuesday’s state of the union speech marked the midway point of President Obama’s presidential term and was met with a host of responses, attitudes and emotions that ranged from the ambivalent, to the bellicose and the supportive. Touching on almost all aspects of American civic life, from health care reform, to education and immigration, and on to foreign policy and humanitarian effort, the role of business in America largely shaped Obama’s speech. Without getting into any of the partisan dimensions of Obama’s politics or speech, I found the core substance and humanitarian aim of Obama’s message difficult to disagree with: “a more robust economy, better health care, and a more harmonious and perfect ‘union.’” What I can understand disagreeing with, is how these goals might be attained. The president’s greatest gift I believe is his ability to identify and name common objectives in a manner that elevates them to the destiny of a nation, reminiscent of JFK’s landmark speeches (and of course his memorable “We choose to go to the Moon” speech in particular). His detractors consider his speaking to be his most dangerous characteristic since his assertions are distinguished by an inherent quality that motivates the human spirit while at the same time diminishing and hiding his plans for getting there, which apparently brim with Socialist/Non-Capitalist intent.
Regardless of Obama’s ideal commitments and political persuasions, he remains a populist basing his decisions off of Realpolitik in an American political landscape that can only seem to conceive ideological strategies. One of the most interesting developments in Obama’s address of the economy pertains to an overhaul of the tax system in which corporate taxes remain highest in the world—a startling and unexpected figure. Most economic savants agree that reform of some sort is necessary, but unsure of how to go about it. Although a lot of speculation as to how this development will take place has crept up, nobody is totally certain what the corporate tax cuts will materialize though some of the initial related statements address an evening of the playing field and ridding some of the loopholes that protect manufacturing industries that are protected by the tax system. With the emphasis on wireless technologies and a streamlining of the bureaucratic process by means of reaching a more efficient and paperless system, it stands to reason that Obama supports innovation within the tech sector. With many references to wireless technologies (looking to cover the entire US with an encompassing network even), it stands to reason that we can expect some of the tax overhaul decisions to favor digital industries.
This week’s New Yorker’s Financial Page featured an insightful look at unionized labor and how the “Great Recession” has negatively impacted the public’s view of all organized power structures from government to big business and on to union groups, with a 41 % approval rating in the most recent Pew poll. Needless to say, this rating is an all time low for unionized labor groups that held a more than 70% approval rating in 1937. Not only are unions unpopular, but the same Pew poll reveals that 60 % of the people believe unions to have too much power. Of course, a multitude of factors have contributed to this depreciation of favor in the last seventy or so years; where both union workers and non-unioned workers both benefitted in the past (40 hour workweeks, weekends off) the union workers seem to be the only ones enjoying the bounty of being unionized (higher pay and pension).
While labor unions comprise the largest public voice for workers’ rights, the public opinion that consists primarily of workers is shifting toward resentment, viewing labor unions as another special interest group profiting at the cost of the outsiders. The public image of unions remains key according to James Surowiecki who quotes a study from 1984 from the economists Richard Freeman and James Medoff who revealed a link that existed between the public perception of unions and their popularity. So unions as a general concept might find themselves in danger of losing any incisive voice or authority, gaining in impotency as they lose their popularity.
These developments all make sense with the prevailing attitudes vaguely resembling Cormac McCarthy’s “The Road” with all corporate (in the communal sense) identities being mistrusted at all costs. What had been for some thinkers like Walt Whitman, an idea of the USA: a place where one’s origins became secondary to a greater common venture; an idea that had won out against many other global corporate narratives and ideas in the last century but has slowly fizzled since the Vietnam war, and finally accumulated with the appearance of President Obama’s vision, whose attempts at inspiring a more perfect union do not seem to be succeeding.
Regardless of what the future holds (it will always remain fascinating), it is helpful to retain an awareness of the dynamics of the working force at which ever level you happen to occupy . Inc. magazine has gathered some helpful resources for small businesses and how to approach unions here: http://www.inc.com/guides/2010/12/what-small-businesses-should-know-about-unions_pagen_2.html.
We are still in midst of a recession and nerves are high when it comes to employment and the state of the small business owner. There are many issues being worked out in our government that will try to stimulate the United States economy and get America out of this recession. And despite party politics and the Republican/Democratic divide, it is important for all of America to get together to spark our financial system.
About a month ago, I blogged about a recent financial reform bill that passed, which set new restrictions on banks, inhibiting them from making faulty investments. Some people said that this bill would affect small businesses by lowering the amount of loans available, making it harder to grow business. However, there is some new legislation that is recently up for debate in Washington, which hopes to help small businesses, giving them tools to grow and thrive in these trying times.
The Small Business Jobs and Credit Act is a piece of legislation that Obama is trying to pass. This act would provide tax cuts and incentive for small businesses. It would increase the amount of loans available for entrepreneurs and promote investment spending by removing capital gain taxes on certain kinds of investments. It is currently being disputed in Congress by the two parties. Obama is urging Congress to pass this act, and put political gains aside.
Like most things in life, there are two sides to this debate. But as a business owner and entrepreneur it is important to know what is going on in Washington when it can directly affect your business. Staying informed can be a powerful tool. Read more about the Small Business Jobs and Credit Act by clicking here.
$150.
That’s about how much my little sister collected in two hours from the neighborhood for her school band’s fundraiser. But this isn’t anything new. School fundraisers are about as American as apple pie…the very apple pies that schools sell at their fundraisers! In my band nerd days I sold such questionable items as:
- Engraved pens
- Cookie jars that doubled as piggy banks
- Wrapping paper
- Lollipops.
But my sister’s band sold something completely different. To find out what it was, tune in next time to our 41-part series on “1,438 Ways to Sell
.”
(Just kidding)
My sister’s band sold: nothing. They went door-to-door with a manilla envelope asking for money to support the band that would march at a football game the neighbors may never even see. They didn’t provide a service, a good, or anything else business class says is necessary for a transaction to occur. And yet, a group of four high schoolers earned almost $75 an hour (in a recession!).
How? They made the neighbors feel good.
Who wouldn’t feel nice giving five bucks to a sweet, adorable band nerd? Most of our businesses offer services and goods – a lot more than nothing. And it could be even more if we made our customers feel good.
So, how do you make your customers feel good?
