Are the adults starting to stir? In a post entitled Volcker a Tipping Point? written on September 21, 2009, I speculated whether or not a particularly influential grownup, Paul Volcker, was breaking with the Obama Administration. On subsequent occasions, Volcker expressed various degrees of disagreement/dissatisfaction. According to Barry Ritholtz: “Mr. Volcker has become quite vocal lately. Be sure to check out the interview he has with Der Spiegel and in Monday’s WSJ.”
Undoubtedly many business figures are disgusted with economic policies, but few are willing to speak up. Less than a month after Volcker intially spoke, David Farr, CEO of Emerson Electric, bravely (foolishly?) blasted away with both barrels:
“Washington is doing everything in their manpower, capability, to destroy U.S. manufacturing,” Farr said today in Chicago at a Baird Industrial Outlook conference. “Cap and trade, medical reform, labor rules.”
“I’m not going to hire anybody in the United States. I’m moving. They are doing everything possible to destroy jobs.”
“We as a company today are putting our best people, our best technology and our best investment in these marketplaces [overseas] to grow,” he said. “My job is to grow that top line, grow my earnings, grow my cash flow and grow my returns to the shareholders. My job is not to shrink and roll over for the U.S. government.”
Volcker and Farr are the only two major figures to express dissatisfaction publicly. Many have privately, as it is obvious the Obama Administration’s Economic Policy is in shambles and not working. Whether we are close or ever get to the point where the business community stands up in force and expresses their dissatisfaction is difficult to assess. The retaliatory powers of the Federal Government are such as to discourage such behavior, unless and until the very survival of the economy is perceived to be at stake.
From a businessman’s standpoint, starting such a battle with the Government is somewhat irrational. From a patriot’s standpoint, such behavior is principled and necessary. How many businessmen are actually closet patriots? We may find out.
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