I have yet to talk with a CEO recently who does not think our nation is in serious economic trouble. The ballooning federal deficit is viewed as certain to consume our economy with inflation, higher interest rates and new taxes stifling future growth. But the toxic deficit is a symptom of a nation unwilling to make tough decisions.
This starts with our two political parties. Democrats are well-meaning and want to lift up every American at any cost. But they can't read a balance sheet and simply do not grasp the debt they are imposing on our children. Also, they will never cross the interests of labor unions or trial lawyers - interests which are directly counter to the nation's economic success.
Republicans claim to oppose deficit spending but they helped pass various bailouts and stimulus packages, adding to the deficit. They favor the government spending status quo and will not make major cuts in programs and will not raise taxes. They mishandled their turn at the wheel and their intrusive view on social issues is counter to any small government philosophy.
Part of the problem is that Americans are used to a panoply of entitlements, benefits, tax breaks, and subsidized social programs like public education. We fight the war on drugs, police the world, and battle in two interminable wars. And now we added health care for everyone. When everything is a priority, nothing is expendable.
Something has to give, and that's where our national political leadership is failing us. They are not forcing the tough choices necessary for our country to have a thriving future. European-style cradle-to-grave benefits cannot be a strategy here. It is a Grecian formula of intractable unions, more government spending and higher taxes which will doom our nation to the status of "formerly great."
The business community has to galvanize and insist that our nation be run more like a business. We need a defined strategy and measurable goals. We need accountability and tough decisions.
Running a business - or at least understanding a financial statement -- should be a qualification for top political leadership. Business leaders must make tough choices for the good of the enterprise. If you can't disassociate yourself from individual hardships your decisions often cause, your enterprise will fail. Being the CEO is a lonely job.
We need more politicians from the business world. Sadly, the Obama team has a record low in business experience with just eight percent of Cabinet members having run a business (less than one third the prior record low from the Clinton Administration).
As President and CEO of the Consumer Electronics Association, I'm often asked if the business community will stand up and demand a better government. I reply that almost every business leader is distressed with the status quo but that few could shift their focus from the business of their business. I also silently wonder why most major business groups are always asking for their own handouts and stimulus funds and tax deals without focusing on the long-term health of the country.
I hope I am wrong. I hope a Mitt Romney or a Michael Bloomberg or some other business leader steps forward and demands that we triage away from social issues and focus on the economy and on real strategies that will create rather than destroy American jobs and prosperity.
Gary Shapiro is president and CEO of the Consumer Electronics Association (CEA), the U.S. trade association representing some 2,000 consumer electronics companies.
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