Business Message to D.C.: Stop Fighting, We'll Spend

[Gramps]

CEO Memo to Washington: You Stop Fighting, We'll Start Spending - WSJ.com

You can hear the bafflement, the anger, on the just-completed run of company earnings calls. Typically scripted and banal, the calls have become an unexpected public platform for chastising Democrat and Republican alike for what's become of our way of governing. A "fiscal cliff" that will reset tax rates looms on Dec. 31, while a presidential election has only sharpened the divide on virtually every major policy issue.

"There's way too much partisan politics," said John Ambroseo, CEO of laser-tools company Coherent Inc. COHR -1.20%on his July 26 conference call. "People should be focusing on improving the economy instead of just bashing each other."

A few CEOs railed against President Barack Obama. Only 10 even mentioned the name of Mitt Romney. Most spread the blame on the broader culture of Washington itself. Its dysfunction, they say, is having real-world effects as many companies plan fiscal years that began July 1.

In separate interviews, the executives made a simple point: Washington is itself trapping much of the energy needed to repower the economy. Find a smidge of common ground, set clear rules, end policy triggered by "cliffs" and brinkmanship, and business will unleash that energy back.


"If you can't plan, you don't spend. And if you don't spend you don't hire," said Paul J. Diaz, chief executive of nursing home and rehabilitation-center Kindred Healthcare Inc., KND +1.41%in an interview. "It's just hard to do budgets."

We can recover, and the only thing holding us back is the inability of these guys to compromise," Mr. Diaz said in the interview. "It sort of breaks your heart."

"I don't think this is just a Republican problem. I think this is a both-party problem," he said. Watching businesses try to cope, "it makes you want to vote for no incumbents and try again."

"There are no innocents."

Bravo. Finally a voice of reason.

 

[volinbham]

Wait a minute - we've been told over and over that business is simply greedy and the "uncertainty" excuse is just that - an excuse.

 

[Gramps]

Wait a minute - we've been told over and over that business is simply greedy and the "uncertainty" excuse is just that - an excuse.

The majority on this forum have been stating the problem is the tax issue...
These businesspeople say the gridlock and bickering in DC is the problem.

 

[golfballs]

Tax them at 95% and move on with it, IMO

 

[volinbham]

The majority on this forum have been stating the problem is the tax issue...
These businesspeople say the gridlock and bickering in DC is the problem.

My view has been and I think the view of many on this board is that it is the uncertainty of the tax situation along with the uncertainty in ACA along with the uncertainty in the regulatory environment. In short, the admin is talking about programs that will dramatically impact the business environment but the details are very fuzzy.

Ironically, I think gridlock without the rhetoric of tax reform, HC reform, energy policy reform, labor reform, etc. would be fine for business. They can adjust to the rules if the rules are predictable. Government doing nothing different AND not preening about up coming change would be good for business.

 

[BigPapaVol]

The majority on this forum have been stating the problem is the tax issue...
These businesspeople say the gridlock and bickering in DC is the problem.

the point is the tax issue and lack of clarity thereof.

 

[lawgator1]

The WSJ runs an article claiming that the problem is the partisan bickering in Washington, bham transforms that into purely the adm9inistration's fault for being unclear on regulation and tax reform. All entirely predictable.

Meanwhile, the stock market is closing in on pre-collapse highs and tons of money is sitting there, waiting to be spent. Why isn't it? The ACA.

Bullcrap.

Its lack of demand, pure and simple. The pump needs to be primed, not with QE3 or some other monetary easing strategy, but by finding a way to put money back in the pockets of the American consumer, who are itching to spend.

 

[utvolpj]

this is pretty much what has been said for a while by our CEO and other C-level guys. Can't afford to make a bad call in a fragile time

 

[hog88]

The WSJ runs an article claiming that the problem is the partisan bickering in Washington, bham transforms that into purely the adm9inistration's fault for being unclear on regulation and tax reform. All entirely predictable.

Meanwhile, the stock market is closing in on pre-collapse highs and tons of money is sitting there, waiting to be spent. Why isn't it? The ACA.

Bullcrap.

Its lack of demand, pure and simple. The pump needs to be primed, not with QE3 or some other monetary easing strategy, but by finding a way to put money back in the pockets of the American consumer, who are itching to spend.

They are going to get the oportunity, have you seen fuel prices?

 

[Gramps]

the point is the tax issue and lack of clarity thereof.

Not according to the businessmen in the article posted.

It is the partisan politics.

from the article:
Find a smidge of common ground, set clear rules, end policy triggered by "cliffs" and brinkmanship, and business will unleash that energy back

.

 

[volinbham]

The WSJ runs an article claiming that the problem is the partisan bickering in Washington, bham transforms that into purely the adm9inistration's fault for being unclear on regulation and tax reform. All entirely predictable.

Actually no - I was responding to the continual denial that "uncertainty" is the problem and that efforts to clarify that certainty are needed. This administration's role is that they continually add to the uncertainty with their policy prescriptions.

Meanwhile, the stock market is closing in on pre-collapse highs and tons of money is sitting there, waiting to be spent. Why isn't it? The ACA.

The stockmarket isn't the economy and it isn't individual growth initiatives with companies.

Bullcrap.

Its lack of demand, pure and simple. The pump needs to be primed, not with QE3 or some other monetary easing strategy, but by finding a way to put money back in the pockets of the American consumer, who are itching to spend.

Predictable that you start by complaining that I completely changed the story when you go and completely change the story. Businesses say "if they can't plan (uncertainty), they won't spend" and you conclude it's not uncertainty, it's demand.

For years, businesses have been saying uncertainty about taxes, costs (HC primarily) and the regulatory environment are holding them back and you ignore it every time and tell us/them it's just about demand.

 

[Gramps]

My view has been and I think the view of many on this board is that it is the uncertainty of the tax situation along with the uncertainty in ACA along with the uncertainty in the regulatory environment. In short, the admin is talking about programs that will dramatically impact the business environment but the details are very fuzzy.

Ironically, I think gridlock without the rhetoric of tax reform, HC reform, energy policy reform, labor reform, etc. would be fine for business. They can adjust to the rules if the rules are predictable. Government doing nothing different AND not preening about up coming change would be good for business.

the bolded: Whats left ?

 

[volinbham]

the bolded: Whats left ?

4 year recess?

A joke but I'm 1/2 serious if they said - we're gonna leave everything like it is for 4 years and in year 5 will start debating what to change we'd have a good 4 years of economic activity.

 

[Gramps]

4 year recess?

A joke but I'm 1/2 serious if they said - we're gonna leave everything like it is for 4 years and in year 5 will start debating what to change we'd have a good 4 years of economic activity.

I tend to agree. That would give business 4 years knowing what the rules are.