Topic Category: Economy

The two-stage municipal elections held in October 2012 were closely watched as a gauge of the effect of a notorious vote-buying scandal on the popularity of the main governing PT. In that regard, the results suggest that the PT remains in a strong position to retain control of the presidency in 2014.

Today we are faced with government debates about the importance of managing national debt. The President’s State of the Union Address did not show a strong movement towards debt reduction. Those of us who worry that growing debt can and will lead to another economic crisis in the U.S. often point toward U.S. fiscal policy performance relative to that of other countries.

President Barack Obama won his budget pound of flesh in the “fiscal cliff” showdown. Taxes on the “rich” are going up. But that hasn’t solved Washington’s deficit crisis. Nor would approval of the new taxes that he proposed help avoid the impending budget sequester.

The current times are disheartening. We are in uncharted waters. Nevertheless, through my columns, I admit to being a cheerleader. I do not apologize for this. As an entrepreneur, I find it useful to think about where we are, where we have been, and where we can go in the future.

The voters have spoken. The U.S. election of November 2012 resulted in very little visible change — Democrats retain control of the White House and the Senate, Republicans the House of Representatives and most governors’ mansions — 30 as of January. The U.S. remains a nation split fairly evenly along party lines, just as it was prior to the election. So what now?

As a small business owner, I knew it was coming. As a skeptic of any pronouncement by the White House relating to healthcare, I knew consumers and small businesses would get socked with higher rates. And as an employer that works with private health insurance providers, I knew they would be able to manipulate Obamacare to make even more money. It has all come to pass as I had feared.

Eliminating short-distance airline flights between regional airports can significantly boost American efficiencies. Plus, airlines can obtain large savings by reducing landing fees, jet fuel consumption and airline service personnel. And this could be possible simply by connecting Amtrak and inter-urban passenger rail travel to many U.S. airports.

An emerging narrative in 2012 is that a proliferation of protectionist, treaty-violating, or otherwise illiberal Chinese policies is to blame for worsening U.S.-China relations. China trade experts from across the ideological and political spectra have lent credibility to that story. Business groups that once counseled against U.S. government actions that might be perceived by the Chinese as provocative have changed their tunes. The term “trade war” is no longer taboo.

While the Obama and Romney campaigns spar over who or what “saved” the U.S. automotive industry, available data indicate that the nation’s frequently overlooked Foreign-Trade Zones (FTZ) program should be in line for a lot of the credit—without bailout loan guarantees or massive federal appropriations.

Enacted by Congress in 1934, the FTZ program allows producers in the United States to bring foreign merchandise for processing into the United States at reduced or zero tariff duties. The hundreds of foreign-trade zones and subzones established across the country—such as Nissan’s two Tennessee manufacturing facilities—are considered outside U.S. Customs territory even though all health, safety, labor and other U.S. laws fully apply.