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Gary Shapiro

Gary Shapiro

Posted: January 19, 2011 01:24 PM

I am thrilled that Tuesday President Obama formally recognized that government regulation can hurt entrepreneurship and innovation by issuing an executive order requiring that regulators balance the impact of rules on job creation, economic growth and innovation. His op-ed in the Wall Street Journal along with this executive order are a major nod to the frustration of jobs creators who feel government is a barrier to their marketplace success.

Tuesday's remarks by the president positively described our nation's "dazzling ideas," "path-breaking products," and "entrepreneurialism." The president repeatedly referred to the "free market" and "balance" in regulation as necessary for our success.

But the readership of the Wall Street Journal, or at least the 700-plus who commented on the paper's website, were seemingly unimpressed. Almost none of the comments were positive. Many were hateful, "birther"-type arguments, typed in "all caps" (the electronic equivalent of screaming) or simply nasty. And despite this pivot towards the business community, only seven Journal readers posted the article on Facebook (by comparison, Amy Chua's promotion of Chinese mothering in the Journal has nearly 300,000 Facebook "likes").

What gives? Is the president - who is clearly trying to tilt to jobs creators - viewed as so anti-business that he can never get credit for advancing measures that promote job growth? In the view of his critics, has he singlehandedly ruined America for dastardly purposes? Can he do nothing right?

Certainly I would love to see President Obama take some bigger steps in the following ways:

  • Ask Congress to remove the new health-care law's requirement that businesses tell the government every item or service they buy that exceeds $600.
  • Seek to lower our corporate tax rate, currently the second highest in the world.
  • Boost the economy by allowing repatriation of foreign earnings taxed abroad and tie this effort to job creation.
  • Enter more free trade agreements and encourage the world's best and brightest to bring their innovative ideas to America and create jobs here.
  • Ask that every new regulation and law have a stated measurable goal and sunset automatically if not affirmatively extended.
  • Make concrete directives rather than merely providing vague direction to federal agencies.

The longest journey starts with the smallest steps and each small step deserves encouragement. The president's executive order certainly does not deserve the type of wrath I have seen inflicted in the last 24 hours.

Are we confusing our passion for the free market with our emotion toward the person who occupies the Oval Office? Will President Obama be vilified no matter what he does?

Let's be honest. He did not campaign as a free-market advocate but he won a fair election. He has a difficult job and anyone who occupies the office gets more criticism than blame. The job has rewards, but every American should remind themselves that, policy differences aside, the president is doing his best to do what he thinks is right. He is also risking a lot more than almost all of his bitter critics.

President Obama is a public servant and any president (and his family) face real personal danger. The job is stressful. And with two wars, tough relations with many countries, and the range of potential threats voiced in daily briefings, the job is big and consuming. I am comforted that the president has proven that he can keep his bearings and his cool. However, I am also distressed that the president has such venom coming his way from so many otherwise patriotic Americans.

I get the disagreement with President Obama. I understand those who feel he is ruining the country through profligate spending, new laws that choke innovation and scary shifts in major policies.

I understand the skepticism of the business community. Having been vilified for two years, facing new burdensome laws, and having taxes of all sorts raised should be a source of major concern. We have created a disaster for our children and we want to hold someone accountable. But the President did inherit a lot of these problems, and while Democrats can't add (as evidenced by their incredible spending binge), Republicans have proven they can't cut spending and simply always promise to cut "waste, fraud and abuse."

Our problems will mount and the President will be a convenient scapegoat until and unless we hire politicians who view their job as priority setting and making tough decisions. We need a focus on innovation and entrepreneurship and the president has signaled that he supports both. Let's support him and when we disagree - let's not be disagreeable.

Gary Shapiro is the president and CEO of the Consumer Electronics Association, which represents more than 2,000 U.S. technology companies. He is the author of the new book, The Comeback: How Innovation Will Restore the American Dream.

 
 
 

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03:07 PM on 01/23/2011
President Obama is a strong leader, but many of my fellow American citizens have yet to realize that a leader is more than just a chief administrator. A good leader must be a good follower, so it's the role of the president of the united states to follow the leaders of a democratic nation as well as follow the leaders of international consortiums. Obama's power seems seeded in his ability to raise awareness, but incumbents who resist change consider this to be disruptive innovation. Innovation is always disruptive to those who represent an infrastructure which should have changed a long time ago... but this kind of disruption is only due to raising standards to an international level which demands more intranational accountability. I bet Obama could help raise awareness that we need to be thinking Globally and not trying to simply assume that we can run the world the way we used to in America.... or worse... like the way it used to be except using an underprovisioned government to enforce non-innovation... that's what's the real pie in the sky. [: God bless America and Technology.
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02:56 PM on 01/21/2011
Yadda yadda unlimited growth, Yadda yadda increase corporate access and power, Yadda yadda lower taxes on the rich and corporations.
Move along- nothing to see here.
03:11 PM on 01/23/2011
I wish corporate tax was the same as individual tax... of course individual tax needs to be reengineered. I think U.S. citizens should pay taxes according to their ability to contribute back to the community, but not until they have built enough momentum to feel actual financial security. It's not rocket science, but science is baffling enough to some of my fellow Americans who turn out for voting. I bet if more people voted the system would operate more efficiently.
02:08 PM on 01/21/2011
The problem is that politicians in general can be trusted to say what they think the masses want them to say. Business owners are unhappy with Obama because he says one thing but his actions say another.

I don't think any politicians words mean much of anything to anyone anymore. I agree with your list of actions. If/when those happen, I'm sure approval from business owners will significantly increase.
03:13 PM on 01/23/2011
The double standard is just as much of a problem in commerce as it is in politics, but you can't look at the ethics of business owners alone, you have to also criticize the people they hire as (typically tactical) managers who execute the double standard when it's not part of corporate strategy.
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Oldchef
Former Executive Chef, tr0ll watcher
11:52 AM on 01/21/2011
Entrepeneurs didn't seem to suffer in the 1950s when millionaires were taxed around 90%. There was a lot of innovation, and a lot of growth for the middle class. Remember when 1 paycheck raised a family? Mom was able to stay home with kids, maybe made a few bucks on the side with a part-time job, or doing ironing for neighbors, or a little beauty chair in the basement. Point is, that was extra money, dad's paycheck was sufficient to raise a family. By the 80s, both needed to work to raise a family and millionaire taxes were down by a large percentage. Go figure.
04:03 PM on 01/21/2011
Innovation suffered. We could have had the internet in the 50's. Regulations outlawed it and government run monopolies stifled it. I know what your going to say: do we really need the internet?

As long as mom can have the borscht on the table when dad gets home from the Duma what more do people need?
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Oldchef
Former Executive Chef, tr0ll watcher
11:21 AM on 01/22/2011
Obviously, since I post here, I'm a fan of the internet. I question whether it would have been possible in the 50s, but I'll give you that one. My point though was that as taxes were lowered for the wealthy, middle class incomes suffered and it became necessary for both parents to work to cover expenses that 1 income covered before. Why should this be so?

Don't know where your final sentence came from. i haven't suggested anything socialist or soviet. Unnecessary snark.
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Raul Garcia
Documentary Filmmaker
04:30 AM on 01/21/2011
Considering most electronics are imported with IBM, Phillips, and Toshiba getting most of the cut through their patent licenses, why in the hell should we be listening to this person in the first place?
03:17 PM on 01/23/2011
If someone's eating their own dogfood they usually can tell you what it tastes like even if they say it's great every time.
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dadw5boys
Disabled Vietnam Vet
08:24 PM on 01/20/2011
There CAN NOT be Free Trade as long as the USA has a Standing Military!!!!!!!

Trade has to be Controlled to protect Vital Industry and Resources. Controlled Trade is not Free Trade!!!!!!
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dadw5boys
Disabled Vietnam Vet
08:22 PM on 01/20/2011
I think your going to find President Obama is talking about BARRIER TO ENTRY Laws.

Keep the $600 reporting regulation to prevent Employers from Hiring Illegals !!!!!!!!

Maybe when President Obama gets some Appointments to Agencies there will be rules. Till then we have to Live with the Lobbyist that Bush appointed.
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NABNYC
08:04 PM on 01/20/2011
Regulations are passed to protect workers, the environment, consumers, and the community in which the business operates. Of course in China the U.S. businesses are allowed to use slave, child, and prison labor, to just dump their poisonous chemicals into the ground and water, shoot it into the air, without any concern for the workers' health or that of the community. Of course businesses don't like regulations -- they figure they pay so much money to our politicians that they should be allowed to do exactly what they want. This idea by Obama is simply another give-away to Wall Street, which will further hurt working people and Americans.
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TheCommons
I didn't quit. You just bored me.
04:27 PM on 01/20/2011
Some innovation I just don't mind hurting. At the top of the list would be the financial sector's innovations in mortgage financing and investing over the past decade. The Wall Street geniuses innovated us right into the nastiest economic downturn since the Great Depression.
02:09 PM on 01/20/2011
More trickle down, free trade corporatis­t tripe.hibboleth no less. "Free Traders" love to sing this refrain ad nauseaum hoping the oft-repeat­ed refrain will go unchalleng­ed. In what way has not Obama caved in to big business on EVERY SINGLE ISSUE?
Look, Moneybags, we tried it your way and it failed miserably, delivering record unemployme­nt while ruining the economy. In point of fact we should engage in aggressive trade practices limiting access to our markets with those who flout fair trade and strengthen­ing our manufactur­ing, technical & research/d­evelopment capabiliti­es. If that sparks a trade war with China, so be it, they need us way more than we need them. And if unrest causes their country to fragment into smaller entities, then better for us and the Chinese people and unfortunat­e for the mandarins who rule them & their oligarch allies.
BigDaddyWow
This member is licensed to spank
11:55 AM on 01/20/2011
Once again, another article misinterpreting regulations. There are 2 types of regulations: 1) business regulations and 2) Wallstreet regulations. The former must be addressed and the author is correct about his ideas. Although I would add:
1) Aggressively provide college scholarships to Americans for degrees technical fields (as opposed to business).
2) Address the lending/financing issues with banks and small business. This can be through an aggressive grant program or an effective SBA (perhaps by-passing banks all-together).

But as a conservative I believe that a serious attempt to quell the dangers posed by Wallstreet must happen in order for America to thrive in the long term. Wallstreet influence in our government is out of control and without an objective plan to break them up and or disable their systemic reach America is destined to have another crash within 10 years; likely much worse than what we see now.

Business must be given all of the advantage it needs to compete; Wallstreet needs to be put in their place; capital formation, lending and services.
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Ppossom
His life is full
10:39 AM on 01/21/2011
Bypassing the banks for SBA lending would cut interest costs for small business and compliance costs. Good idea.
11:04 AM on 01/20/2011
Obama is anti-business?

Nothing could be further from the truth.
BigDaddyWow
This member is licensed to spank
11:43 AM on 01/20/2011
He *was* anti-business. Now he is campaigning.
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JazzyJim
Nuzis stay to the Right
03:33 PM on 01/20/2011
You're repeating the Chamber of CoNmerce and RNC echo of ignorance. 8 years of Bush and you think the worst economy in 80 years he created was all going to magically happen overnight?
10:26 AM on 01/20/2011
We can do with more regulation and less economy-ruining innovation of Wall St. bankers. More regulation and less corner-cutting innovation by BP, too, please.

Funny how, despite all these regulations that they complain about, corporations are making record profits.
12:44 PM on 01/20/2011
A: Just because corporations are making "record profits" does not mean they are being more innovative.

B: Regulations hurt small businesses more than they do corporations which can attribute to these record profits. Esentially, small businesses are getting screwed by the regulations which allows the establishment corporations to make these profits.
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TheCommons
I didn't quit. You just bored me.
04:31 PM on 01/20/2011
In this context, how are you defining a "small business", and what specifically are the regulations you see as problematic?
09:57 AM on 01/20/2011
As the "Chamber of Electronics Commerce" spokesman would we expect any other perspective. The color of commentary has more to do with position than fact.
oilfield
large employer per obamacare
12:03 AM on 01/20/2011
i think that he is viewed as so anti business that it isnt believable that it is anything other than rhetoric. if he is serious, we will appreciate the help. he could start out by having permits issued for drilling in the gulf.
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rabb046
03:10 AM on 01/20/2011
Great idea. Then maybe he can start drilling in Alaska and the Colorado Rockies.
Even Richard Nixon was for conservation.
Look the word up and tell me next time you hear a politician use it.
Not gonna happen.
America is the land of the gluttonous.
More butter, more syrup?
oilfield
large employer per obamacare
11:20 AM on 01/20/2011
since we arent going to stop using oil in the near or distant future....maybe we could be realistic and get some of our own oil.....ever hear of a gas station?
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rabb046
02:42 PM on 01/21/2011
No one said stop.
The word is conserve.
No politician uses it.
Ever hear of cutting back?
Here's another good idea.
To combat America's obesity problem, let's give a tax incentive to purchasers of Big Gulps.