President Joe Biden enjoys taking a strong stance against corporate America when out on the campaign trail.
The Democrat reminds voters that corporations ought to pay greater taxes and holds a number of companies accountable for driving up prices by encouraging “shrinkflation” and “greedflation.”
However, throughout the last few months, high-ranking Biden administration officials have also increased their outreach to chief executive officers and other business executives, inquiring about their needs. The endeavor intrudes upon areas that the presumed Republican nominee, former President Donald Trump, views as his personal domain in the business community.
In spite of the fact that many businesses are reluctant to openly support one candidate over another due to the sharply divided electorate, both contenders want to emphasize to voters before November that they can cooperate with employers.
The pitch that the Biden team makes to business executives usually sounds like this: “We believe that the economy is doing well, but we would like to hear your ideas about how we can stimulate investment.”
Director of the White House National Economic Council Lael Brainard stated, “They know that they’ll always get a hearing.” We’re practical people. We take care of their problems.
BIDEN AND TRUMP ARE BOTH COURTING BUSINESS
Trump will argue that the economy would improve if he took back the Oval Office on Thursday before the Business Roundtable, an organization of more than 200 CEOs.
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Biden was also invited to speak, but he has a conference of international leaders with the Group of Seven scheduled in Italy. Former CEO Jeff Zients, the chief of staff of the White House, will step in and present the president’s plan to the group.
Biden, a former senator from Delaware who tempers his criticism of corporations by pointing out that his home state is the “corporate capital of the world,” has always strived to strike a balance between the interests of workers and businesses.
In addition to marketing everything from steaks and neckties to educational courses, Trump has enhanced his status as a billionaire real estate developer. His namesake, Trump Media & Technology Group, is also listed on the stock market.
With his promise to reduce regulations and his reduction of corporate taxes, Trump has garnered the backing of Wall Street billionaires like Stephen Schwarzman, who referred to him as a “vote for change.”
The Trump team denied the allegations made by The Washington Post, which claimed that Trump had asked oil industry CEOs to contribute to his campaign funding because of the money his administration would bring in.
Despite this year’s surging stock market and low 4% unemployment rate, Trump has called the U.S. economy “horrible.” Voters are primarily receptive to his argument because of the 2022 inflation rise, which has made many American adults gloomy about the state of the economy.
“Business leaders and working families alike are eager for the return of these common-sense policies,” according to Karoline Leavitt, a spokesperson for the Trump campaign, which includes tax cuts, deregulation, and greater production of oil and natural gas.
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WHAT CEOS ARE TELLING THE WHITE HOUSE
During their business outreach, Biden’s top advisers learned an alternative economic perspective to what Trump is promoting. According to administration officials, CEOs they have spoken with are largely happy with how the stock market and the economy are performing overall because inflation has decreased without the recession that some had feared.
The Biden team claims that American business leaders are searching for strategies to maintain development. There aren’t enough qualified candidates to cover the open positions. Simplifying government permits is necessary. Additionally, they support the administration’s efforts to extend a corporate tax credit for R&D expenditures in general.
According to a number of Biden administration officials, CEO conversations have not expressly focused on the November elections, but business executives have voiced concerns about Trump as well. Trump’s proposed tariff increases might harm business profits and sour relations with trading partners. If Trump attempts to subvert the rule of law, which has been the cornerstone of American capitalism, or attempts to exert control over politically independent bodies like the Federal Reserve, stocks and bonds may plunge.
Zients requested that Biden’s staff expand their outreach. For a dinner in February, the chief of staff brought together six other senior officials with the intention of putting into action a plan to have more conversations with CEOs and their predecessors.
Every official consented to speak with ten CEOs. Members of the group held conversations with over 100 people by the end of April. Biden met with eight CEOs in May as a result of the effort, including those of United Airlines, Marriott, Xerox, Corning, and Citigroup.
Wally Adeyemo, the deputy secretary of the Treasury, claimed that he left the talks with a greater understanding of the overlaps between the concerns. The development of the data centers needed for artificial intelligence, for instance, was made possible by the administration’s renewable energy policy.
According to Adeyemo, the government has made some progress in cutting down on the amount of federal paperwork required for permits, which has the potential to reduce two-year processing timelines. Additionally, the administration is attempting to determine if businesses can assume the financing for some labor programs that were previously funded by federal aid during the pandemic.
The government is making the broad claim that its policies are superior for overall growth, which eventually boosts profitability.
Adeyemo stated, “Pretending we’re going to agree with the business community on everything is one of the things we don’t do.” “We’re going to keep talking to you, and we want feedback.”
THE RACE TO IMPROVE WORKERS’ SKILLS
According to those with knowledge of the discussions at the Biden meeting, the CEO of the renowned construction company, the Bechtel Group, Brendan Bechtel, emphasized the need for more trained labor at the meeting. Some businesses are forced to make business decisions that reduce their revenue because they are unable to hire everyone on their payroll.
According to data from the Labor Department, there are currently almost 1.5 million more job vacancies than there are jobless individuals looking for work. And as a result of a labor shortage, employers have reduced the number of job postings they have made in the past year. For instance, 516,000 positions are available in manufacturing companies, down from 647,000 in the previous year.
In addition to decades of education policies that emphasized universities and frequently ignored the need for tradesmen like electricians, plumbers, and welders, the shortage is a result of both the robust employment market and these policies. Reversing the trend of declining labor force participation among males aged 25-54 could result in millions of men returning to the workforce.
According to economist Harry Holzer of Georgetown University, “we got into a college-for-all mentality in the U.S. and other forms of skill development were demoted.”
Gina Raimondo, the secretary of commerce, has prioritized getting more women into the construction industry. Her department’s backing of initiatives to resurrect domestic computer chip production may depend on having a sizable pool of skilled workers. According to her, strengthening relationships with the recruiting companies is essential to finding a solution to the issue.
Raimondo stated, “You need to start with the employers—which might not sound intuitive.” “You go to the company and ascertain what skills and at what wage they plan to hire.”
Raimondo viewed the problem in terms of the economy, noting that a shortage of skilled labor would slow down company growth. However, she also sees it as a political and cultural matter. One of the pledges that Biden made in his bid for a second term is that voters should have hope that they had routes into the middle class.
When people believe they have no role in the economy, Raimondo said, “people start to lose hope.”
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