Are we living in ‘anti-business’ times?
By Geert De Lombaerde Posted on December 28, 2009 at 1:27 pmA blog post by Harvard professor Greg Mankiw on today’s investment climate has drawn a response from his peer, Jeff Frankel.
I am skeptical that investment is currently depressed by perceptions of an anti-business climate. But if the average businessperson does in fact have the perception that recent Democratic administrations have been worse for business than Republican administrations, I suggest setting aside campaign rhetoric and looking at actual history… Investment will recover when the economy does.
The broader question remains: Are today’s entrepreneurs and corporations being properly incentivized to invest? Let us know what you think.
Tags: business sentiment, business spending, economic policy, Greg Mankiw, Harvard University, investment, Jeff Frankel
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I’m not a finance guru nor an economic wiz but I have owned and operated several businesses in my career. There is the perception that if you own your own business, you are very wealthy or make a higher than avearage salary. Few people know exactly what it takes to run a business.Regardless of the size of the business the income must exceed expenses or the venture won’t be around very long. Nobody cares if “Joe’s Popsicle Stand” doesn’t make it but when we read about the mismanagement of buisnesses where millions/billions of dollars have been misspent or embezzeled it does get some folks in a funk. Most people I know that are anti business don’t fully appreciate what business does for this country and it’s citizens. They only feel cheated because they work for peanuts compared to what the read about in the meadia concerning corporate CEOs and football coaches. They forget these people make the big bucks because they bring in the big bucks. Basic bookeeping maxims can show how the money flows. The income generators (the income side) and the paper pushers (the expense side) was never fully explained to these anti business folks at an early age as to how those positions line up on the ledger. Unfortunately if your job description lands you over on the expense side of the ledger you are in the same category as the light bulbs, copy paper and toilet tissue. Yep, you’re going to feel slighted.