Mmm...Capitalism

President Obama recently spoke in front of the Chamber of Commerce, a notably conservative institution, to many large business leaders, urging them to begin spending their saved money in order to create jobs and stimulate the economy. Many business moguls have a view of the Obama administration as anti-business due to the new health care law and many regulations that businesses say "quell capitalism." President Obama, in his speech, promised to reform the tax code and remove many superfluous regulations.

While I do agree that corporations should be using their money to create jobs, such as those in research and development, manufacturing, etc., I somehow doubt that they will change their business practices drastically. One must always remember that a business does not have a nation's best interest as its own; the best interest of a business is always to have increasing revenue. Why do many manufacturing and low-expertise jobs go overseas? There is less regulation on business and corporations can traditionally pay the workers less, thus ensuring a higher profit margin. To think that a corporation will change its practices without first groveling at its knees and acceding to every demand is naive.

Strategically, the president made a good political move by speaking at a venue that has called his health care law "anti-capitalistic." By going to the Chamber of Commerce, he showed that he is willing to work with businesses to better improve relations between business and government. This may, however, be taken by business as a sign of weakness on the part of Obama, lending to a theory that business has the US in a vice grip.

So, how far does Obama go when attempting to compromise with business? Does he remove environmental regulations? Does he lower the tax rate for businesses? Does he offer incentives to business to create jobs in the US? We shall see, though nothing is certain now with a divided government, and the president knows that.

The word "compromise" can be construed 1 of 2 ways: a willingness to reach an undisputed conclusion by giving up and accepting certain options, or as an abandonment, an extrication of what composed a certain object. The definition that Obama chooses in the coming year and a half may just be left up to history.

That's all for now,
Das Flüg

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