With the 2012 Presidential election in the books, we are gaining a clearer perspective on what the next four years of governance might look like and what the ramifications might be for businesses.
In the two weeks following Election Day, the media has been quick to offer citizens multiple reports of that both Democrats and Republicans appear more willing to emphasize better cooperation during Barack Obama’s second term, following a period in which policymakers received some of the lowest approval ratings ever. The persistent cry from American citizens has been a need for collaboration towards economic recovery, and although the worst may be behind us, many businesses are still feeling immense pressure and uncertainty amidst the changing landscape.
Hostess, makers of Twinkies and Wonderbread, among several other iconic products, recently announced that it would sell its popular brand and shutter its doors, laying off thousands of workers nationwide. The downfall of this long-lasting company, founded in 1930, is a microcosm of larger economic and political issues. The last few years have been especially illustrative of the dangers of debt for businesses of all sizes, as the company was effectively unable to combat a strike by unionized workers due to insufficient financial resources. During an electoral campaign in which predatory private investment funds were under great scrutiny thanks to Mitt Romney’s career at Bain Capital, it became obvious that there are very few if any viable options for companies in this position under the current regulatory and fiscal climate.
On the other side of the coin, Chrysler announced it is planning a $240 million investment and will add and expand jobs at some of its Michigan plants, a clear sign of confidence in the economic climate moving forward. The auto industry has become a popular barometer of the state of the U.S.’ economy, and played a significant role in the conversation of this election cycle as well.
Any significant changes that may come down the pipeline as a result of shifting attitudes in Washington towards the best path to recovery may be a double edged blade for businesses. Regulatory conditions and tax code do not necessarily go hand-in-hand, and what will be good for some may be anathema for others. Both parties have vocally championed small businesses, but Americans know from experience that larger companies carry the weight of our GDP and receive the brunt of the attention in debates of policy. The future is still uncertain, but hope remains that our elected officials will treat the economy with urgency and respect for all of its constituents.
Those who have successfully weathered the storm will hope for a continued economic recovery to keep things moving forward. Despite the disarray of the past few years, businesses can call upon the strategies that carried them through to press on.