10.16.2012 Policy Points

Not Like A Business

Jordan Weissmann of The Atlantic explains “why conservatives don’t really want the U.S. to run like a business.”

Think, for a moment, about what corporations are. They exist to make a return for shareholders and are generally managed from the top down. Every few months, a CEO has to ask themselves: “Are my investors richer than they were four quarters ago?” If the answer is yes, chances are they’ve done their job. If the answer is no, it’s their obligation to cut costs and boost revenue. Once the boss comes up with a strategy for making it happen, it’s everybody else’s task to implement it.

Upshot: They’re dictatorships that turn a profit.

This is not how most people envision the United States, thankfully, and especially not conservatives. We’re a messy democracy that leaves much in our economy up to chance (or, if you prefer, the market). There’s no official growth target for the economy. The Federal Reserve can set all the employment benchmarks it wants, and nobody else is required to play along. Congress can tell the president to take his jobs plan and shove it. Corporations can take tax cuts designed to spur hiring and spend them on fat dividend checks for shareholders instead.

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