Excerpts from the following article are also available on Slate.com’s BizBox small business blog.
It appears that our mid-term election results will probably have little impact for small-to-medium sized businesses in the immediate future (the remainder of 2010 into the first quarter of 2011).
More specifically, there doesn’t appear to be any clear message sent to our politicians when it comes to our treatment of small-to-medium sized businesses. Overall, perhaps the clearest message sent was that Congress needs reform (nothing new there), and that the meaning and impact of President Obama’s health care bill is still a mystery.
However, in the long run, for the remainder of President Obama’s term, and should he win a second term, these elections will likely have greater significance to the business community. The election results should send a clear signal to government that the public wants increased efforts by Congress and regulatory agencies to amicably prevent and resolve issues at a lower cost to businesses. Yesterday’s results also signal the further erosion of the strength of the partnership between the Democratic Party and labor unions. Consequently, there appears to be little chance for any significant pro-union legislation such as the Employee Free Choice Act (AKA “Card Check”).
In the employment law (i.e.,civil rights and wage and hour spectrums), it appears that the message is to reduce oversight of small-to-medium sized businesses so that they can create jobs and impact the economy. Or, in other words, it’s not the government alone that innovates and creates jobs (unless we’re truly migrating to a socialized and civil service economy), it’s the business community, along with respectful oversight and enforcement from government, that creates jobs and innovates.
One festering concern for the business community is the underfunding of pension plans, and other deferred compensation plans (e.g., college savings plans). It’s no secret that many of these plans are underfunded and mismanaged. This, in conjunction with Social Security, Medicare, etc., poses a significant problem for government and the private sector. Hopefully, in the long term, yesterday’s election results mean these issues won’t disproportionately impact small-to-medium sized businesses, and that government needs the business community’s cooperation to fix this issue.
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Such a good post! I think the message you gave through the post is outstanding. Hope to read such posts in future!