Which Political Party Is Better For Business?
 

The Dwindling Republican Business Base: It's the Economy, Stupid

by John W. Dean | January 25, 2008 - 10:24am

As the stock market gyrated wildly this week, given the precarious state of the American economy, the New York Times published a table relating to anti-recession efforts in times past. In scanning it, I could not help but notice that among the last eight recessions, all but the first, in 1948, occurred during Republican presidencies. (The first occurred when Republicans controlled Congress.)

Here are the recessions and their Republican presidents: August 1957 to April 1958 (Eisenhower), April 1960 to February 1961 (Eisenhower), December 1969 to November 1970 (Nixon), November 1973 to March 1975 (Nixon and Ford), July 1981 to November 1982 (Reagan), July 1990 to March 1991 (Reagan), and March 2001 to November 2001 (Bush II).

As we all have watched the stock market this week, thoughts of past major crashes have no doubt popped into the minds of many. Republican presidents oversaw them. Herbert Hoover, of course, was president when the great crash of 1929 occurred, and Ronald Reagan was president with the most recent serious crash - Black Monday in 1987.

The Republican Party has long been the favorite of the business world. But when one steps back to look at the facts objectively - as business leaders who want to remain in business must do, and now seem to be doing - the question must be asked: Is a Republican bias actually good business?

Which Political Party Is Better For Business?

Which political party is actually best for business? To pose the question is easy. However, to answer it objectively and honestly is not possible, for all business is not the same and the answer depends upon what kind of business one might be addressing.

For example, hedge fund managers, who have walked away with billions in untaxed profits under Republican tax policies unavailable to other people, love the GOP. CEOs with humongous salaries and endless stock options also love the current Republican attitude of demanding tax breaks for the very rich. Big businesses with high- powered lobbyists in Washington on their payrolls to protect their interests find Republicans far friendlier to their concerns than they do Democrats. These people, of course, are among that less than one percent of Americans who have profited so gloriously under the Bush-Cheney economic policies.

Mid-sized and small businesses - which are the overwhelming majority of businesses in the United States - have, until lately, thought that they were better off under Republicans, but they are wrong. They are just now remembering that when recessions come, they are easily wiped out, while big businesses merely make less money and often take advantage of the downturn. These people are the upper middle class and middle class of America - the people that the Republicans are slowly bleeding into non-existence, until there will be no middle class, only rich and poor.

Fortunately, increasing numbers of all levels of business people are realizing the economic incompetence of Republicans, and their protection of the super-rich is, in the long term, bad business for everyone. Accordingly, growing numbers of voters have come to the conclusion that Republicans are not good for business. "GOP Is Losing Grip On Core Business Vote," an above-the-fold headline of the Wall Street Journal screamed last fall.

Some Specific Reasons Businesspeople Are Leaving the GOP

According to a number of business publication, there are several reasons for the "elephant stampede" - to use the Wall Street Journal's term. Broadly described, the disenchantment of business leaders with the GOP falls into several categories, which I have set forth without trying to rank them:

The War In Iraq. Just as many other Americans find the war in Iraq an unqualified disaster, businesspeople tell reporters that they do not like the lies Bush and Cheney told, to take us into a war that will likely only create more terrorists hating America. Like many others, they see this as dangerous folly. In addition, the war has been a fiscal disaster, with billions thrown away and no accounting whatsoever. As a retired Westinghouse manager and lifelong Republican told the Wall Street Journal, "'We've lost control of spending,' and the administration's execution of the Iraq war has been 'incompetent.'" Businesspeople have little tolerance for incompetence; only true ideologues can over look it.

Excessive Deficit Spending. Former chairman of the Federal Reserve Alan Greenspan is a very high-profile Republican in the business and finance communities. Greenspan told the Journal, "The Republican Party, which ruled the House, the Senate and the presidency, I no longer recognize." Similarly, New York City Mayor and billionaire businessman Michael Bloomberg recently left the GOP, complaining - as reported by the Journal - that "conservative politicians in the U.S. [are] guilty of 'lunacy' for running up deficits for future taxpayers to pay." The GOP's gigantic deficits have also weakened the dollar, making business for many much more expensive.

Focus On Social Issues. Countless businessmen I know tell me they are exhausted with the Republicans' focus on abortion, gay marriage, and the host of social issues the party insists on putting on the front burner. Business journals have similar reports. This is not surprising, for all polls show that for most Americans, these are not the centrally important issues.

Immigration Policy. Business Week has reported that as the Republican presidential candidates have increased their who-can-talk-the-toughest-on-immigration efforts, they are also losing support in the business community. Business Week pointed out that "in industries like agriculture, construction, landscaping, and restaurants, most employers want comprehensive immigration reform that allows undocumented workers to join a guest worker program or pursue a path to citizenship, as well as an effective way for new immigrants to work in the U.S." With the exception of John McCain, all the GOP presidential candidates start their day with a hefty dose of xenophobia.

Health Care Policy. Many industries want the federal and state governments to address the soaring cost of health care. Not only do they need healthy workers, but health care costs are narrowing profits. Few savvy businesspeople think well of the Republican health care plans, which make health care providers and insurance companies richer at the expense of everyone else.

Environmental Responsibility. American business is the leading polluter in America, and for years business has rebelled against efforts to regulate the damage it causes to the environment. Even now the pre-Enlightenment attitude of certain conservative Republicans toward science has enabled them to actually believe that global warming is merely a hoax. Yet more sophisticated businesspeople understand they must clean up their acts. Many know that short-term gains are leading to long-term and potential irreversible damage. Accordingly, outside the auto and fossil-fuel-related industries, businesspeople are increasingly disgusted with the failure of recent Republican Administrations (Reagan, Bush I and Bush II) to develop a realistic, responsible and comprehensive environmental policy.

Republicans Have Proven Themselves Bad For a Good Economy

Business, however, is only part of a broader picture for it operates - as do we all - within the American economy. Thus, there is an more fundamental question: Which political party is best for the American economy, and why?

That will be the subject of Part II of this look at the future implications of further Republican rule. Frankly, I was surprised at what I found.
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About author

John W. Dean is a columnist for FindLaw and a former counsel to the President.

http://www.smirkingchimp.com/thread/12398

Now you know why they are abandoning the Republicans and supporting Hillary.
But of course the far left will try to spin it into being a bad thing because it
is Hillary, and since Hillary is the embodiment of all evil to the far left, it
obviously must be a bad thing.

The Repugs will say results lags policy by a few years.

This is by far my favorite quote:

Keep this one on file for the Bush apologists. :thumbs:

Heh! :D

Remember how they used to credit Reagan/Bush for Clinton's economy?

(Which was a tacit acknowledgement on their part that the economy was in good shape when Clinton was president.)

http://www.bartcop.com/bad-coffins-dream.jpg

good point

The greeks tried running their fledgling states with their merchant class and failed miserably. That's why Plato said in effect if you run your government (republic) with merchants you are asking for big troubles. He also said pure democracies will bankrupt themselves when they figure out they can vote themselves the state's treasury. Hence, his concepts of the Republic and having a class of people steeled over a lifetime of different experiences before they can govern. The Romans tended to be good at that too.
Now we have failed baseball and oil well owners ruining things. And lifelong politicians who haven't earned an honest days wages in their lives. We desparately need term limits. And teachers and nurses and plumbers on the Supreme Court. (yeah, i said it. But it beats having worthless attorneys debating how many angels dance on the head of a pin.)

The Libertarian Party.

The two wings ("Democratic" and "Republican") of the Statist/neo-fascist party are bad for business. And our rights, freedoms, and liberties.

I feel like both the major parties have been giving us the business for long long time.

We paid almost 100K in taxes last year. I don't know how paying more in taxes will help our business, especially when that extra money we will have to pay could have gone to equipment, a warehouse, a skidsteer, maybe hire more people...

Well, that is what people don't get. They say "tax" business, but they don't really understand what that means, nor how much tax a business does pay. Nor do they understand the expense businesses, especially financial institutions, pay to remain compliant with the federal government. We need to stop spending in this country and lower taxes. There is no more money to be squeezed out of anyone.

another thing they don't get is that most of the corporations just pass the tax hike on to the consumer. Which for us means not only are we paying extra in taxes, but we have to cover our suppliers price increases to cover their tax hikes.

In our business, where we have to bid for every job we get, and thats a problem. Especially with the annual moron who comes in every January and lowballs every job he bids just to fill up his backlog. So we cannot just raise our prices to cover the hike we incur, or we will be sitting around with our thumbs up our asses every summer and fall, instead of making money.

I'm waiting for someone to tell me how this is good for our business.

That's why we need to get rid of the income tax and move to the Fair Tax.

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We have been over fished ;D

Just don't understand why people would vote for someone who says they are gonna raise their taxes.

Class warfare has a very powerful effect on some people. I can't understand why Hollywood would be liberal because of the venom the left spews against the rich. I guess they somehow feel "guilty" for making all that money...:spit:

What if they were going to lower your taxes at the same time.
Would you still vote against them out of general principle?
Or would you look out for your own interests first?

you dont know why ? I will tell you , My operating cost was a fraction of what it is now ,Under Clinton or in 2000 ..... you really thing that those tax cut you got was enough to offset my fuel prices ? ,I wouldnt mind higher taxes for a more bustling economy , in the long run we all make more money ..... Now most of the lower class wont see a tax increase ...

Class warfare doesnt have dick to do with it , what it all boils down to is the bottom line , you would gladly take a 10% in taxes , and have fuel drop below 2.00 per gallon ...Or electric , natural gas etc .......

I cant believe it is this hard for some of you to figure out ...... What do you really think we are running out of Oil ?
If so then you ****ing better believe I am superman , that is more closer to the truth then running out of oil ..... you people in Colorad need to wake the **** up ....... I am only going to say this once ... Shale oil cost 12.00 per barrel to bring up out of the ground .....12.00 ****ing dollars .Colorado would make Saudia Arabia look like a puddle ....... you people that vote republican have got to stop believing the bull**** , seriously , last time you ****ers thought you knew something ,we wound up with Bush ........ Learn from your mistakes .........

I should have taken pictires of my last load instead of the weather , perhaps I am being to harsh on some here , the last rig move I was on , from Casper to Rio Blanco Colorado , I helped move Nabors Rig 109 , the oversized part I had on I didnt know what it was , so I asked , it is a "Shale Shaker" about 3 times the six of a normal shaker ( sits over the mud pit , dont ask me how it works mm kay) I asked the driller , who has to sign my paper work , is this a shale oil Rig ? he said yes .... I said I bet it cost over a 100.00 per barrel to drill for that stuff .. He laughed and said , we could do it for 12.00 a barrel if we want ...... it is just getting the amount of oil to cover the cost of the equipment ....... a normal shaker you can fit 5 or 6 of them ( depending on the size of the rig you are moving ) on a 53 foot trailer .... the Shale Shaker is over 13 foot wide , 14 '9 tall and 56 feet long ....... rest of the rig looked normal though .......

Yep.

Which brings us back to the headline...

The Dwindling Republican Business Base: It's the Economy, Stupid

The article outlines why the GOP is not the better party for business and why those people on this board who claim to be pro-business are actually voting against their own interests by voting republican.

So W*GS, you say the libertarian party is the best party for business?

Can you give some historical examples or evidence to support this assertion?

The erroneous assumption here is that giant, multinational corporations like ExxonMobil wouldn't be able to make huge profits if we stopped giving them tax cuts, subsidies, loopholes through which to avoid paying taxes, etc.

Nothing could be further from the truth.

Given a choice between the two wings of the Statist Party, and the LP (and not just in regards to business but also all our rights), it's no contest.

Easy. Whenever the government has kept itself to its strict and narrow Constitutionally-granted powers, everyone has benefitted. When its power has been allowed to expand beyond those limits (and today, far beyond those limits), all suffer. I give you the War on Drugs, the "War" on Terror, the USA PATRIOT Act, and so on, as examples of the latter.

Suffice to say your socialist ideology is a dead end. Literally.