As the State of the Union approaches, Americans are being confronted by two competing visions of their economic future. A progressive vision, where a resurgent middle class will drive economic growth; and a conservative vision, in which greater corporate freedom will hopefully create wealth that might one day trickle down.
In recent weeks, Mitt Romney's record as a business leader has come under increased scrutiny. His opponents in the Republican primary have tended to focus their attacks on his dubious record as a job creator, characterizing him instead as a corporate raider. More troubling, however, is his vision of what is good for business and what that would mean for the American economy and society.
Earlier this month, Romney gave a revealing interview to Fortune, during which he indicated that Sarbannes-Oxley is high on the list of meddlesome government intrusions he would like to repeal. While Sarbannes-Oxley is an imperfect piece of legislation -- as George W. Bush stated post-Enron -- it was designed to ensure, "No boardroom in America is above or beyond the law." It needs reforming, or perfecting, not repealing.
Romney also argued for slashing legislation, taxes, and social and environmental standards in order to attract new investment and avoid off-shoring of current jobs. Just as "water finds the lowest point," he stated, so "businesses find the most attractive place." In Romney's eyes, then, the United States, American businesses, and the American worker are trapped in a global race to the bottom.
Romney's solution is informed by the story he tells himself -- and Americans -- about Bain Capital: namely that the firm invested in and turned around failing companies. His conclusion is that a CEO who knows what he is doing can make any business succeed, and as such, should be given greater freedom to act. What Romney is promising, then, is government of the CEO, by the CEO, for the CEO.
Unfortunately, in the grand scheme of things, management is one, albeit potentially significant factor, in what determines business success and economic growth. After all, some of Bain's investments failed. Presumably, Romney hired good people to run those companies too (unless of course he instructed them to simply strip assets).
So what does drive investment, job creation, economic growth and business success?
In 2011, Forbes ranked America a dismal 10th on its top 10 list of the best places in the world to invest and do business. Australia, Canada, New Zealand, Norway, Sweden, Denmark, Germany, Singapore, and South Korea all placed higher. Interestingly, all have tighter financial and corporate regulation, and each of these governments spends a much larger percentage of GDP on education, skills, research and development and infrastructure programs. According to Romney, these are policies that reduce competitiveness. So why is the United States lagging behind?
What Forbes and the World Economic Forum understand, but Romney has failed to grasp, is that countries and regions with modern infrastructure, a well-educated and healthy workforce, tolerant, diverse and creative societies, and good public services, are both better places to live in and better places to invest in (the two are related, these countries attract more highly skilled labor, while their egalitarian approach also strengthens domestic demand for goods and services.
America needs to be engaged in a race to the top, one in which the ambition is to be a world leader, not the "lowest point" of the global production chain. This is what President Obama referred to in last year's State of the Union as winning the future. The challenge this week is to build on that vision, presenting a progressive pro-business agenda, one in which a resurgent middle class helps support the creation of high quality jobs, and where investment in people, technology and infrastructure supports today's business as well as the industries of the future.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.