Investors of the World, Unite!
Much has been made in recent years over the rights of union members to strike against their employers. In particular, this right, which has largely been accepted (if not appreciated) as a given in private enterprise for the last fifty years, has been under renewed scrutiny due to the number of public employees now enrolled as members of public employee unions. These unions, for the most part, are prohibited by law from striking. However, as a practical matter, the threat of a strike, or at least a “sick out,” gives them leverage against their employers, the citizens of these United States of America.
With the 2012 election now behind us, and President Obama, the United States Senate and House of Representatives all left to the status quo, it may be worth considering a different group that has appeared to be on strike for the last few years—wealthy investors. I believe these wealthy investors have largely gone on strike against what seem to be uncertain and risky times.
Rather than invest in business growth opportunities, it seems that a large number of the investor class have decided to put their money into “safe” things like CDs and bonds. This class of investments is, by definition, conservative and, given current interest rates, likely to, at best, preserve the investor’s capital. There is no hope of increasing one’s wealth with these types of investment, but they exist as a means to hang onto what one already has. In this way, investors have effectively gone on strike against the fiscal and business policies of the current administration. Similarly, business owners have limited their investment in their own businesses, fearing the effect of the next round of anti-business legislation and/or administrative rules affecting their bottom line.
Given that the election of yesterday, November 6, 2012, retains the political status quo and, presumably, the same fiscal and business policies of the current administration; I see very little hope of renewed investment on the part of the wealthy and, more likely, four more years of their current strike. Frankly, the thought of this is demoralizing and I sincerely hope that I am wrong. As an entrepreneur, I am extremely dependent on wealthy investors putting their money at risk in the land development market, and then requiring my services as a transportation planner. Most of those investors have been sitting on the sidelines for the last five years (or spending their money and time snapping up existing, bankrupt development properties) and have simply refused to put their money into conventional land development projects in these uncertain times. Without such investment, there is little for a land-development-oriented transportation planner to do!
With the 2012 election now behind us, and President Obama, the United States Senate and House of Representatives all left to the status quo, it may be worth considering a different group that has appeared to be on strike for the last few years—wealthy investors. I believe these wealthy investors have largely gone on strike against what seem to be uncertain and risky times.
Rather than invest in business growth opportunities, it seems that a large number of the investor class have decided to put their money into “safe” things like CDs and bonds. This class of investments is, by definition, conservative and, given current interest rates, likely to, at best, preserve the investor’s capital. There is no hope of increasing one’s wealth with these types of investment, but they exist as a means to hang onto what one already has. In this way, investors have effectively gone on strike against the fiscal and business policies of the current administration. Similarly, business owners have limited their investment in their own businesses, fearing the effect of the next round of anti-business legislation and/or administrative rules affecting their bottom line.
Given that the election of yesterday, November 6, 2012, retains the political status quo and, presumably, the same fiscal and business policies of the current administration; I see very little hope of renewed investment on the part of the wealthy and, more likely, four more years of their current strike. Frankly, the thought of this is demoralizing and I sincerely hope that I am wrong. As an entrepreneur, I am extremely dependent on wealthy investors putting their money at risk in the land development market, and then requiring my services as a transportation planner. Most of those investors have been sitting on the sidelines for the last five years (or spending their money and time snapping up existing, bankrupt development properties) and have simply refused to put their money into conventional land development projects in these uncertain times. Without such investment, there is little for a land-development-oriented transportation planner to do!
I recognize that, as Humphrey Bogart said in Casablanca, “I'm no good at being noble, but it doesn't take much to see that the problems of three little people don't amount to a hill of beans in this crazy world.” Whether it is three people or the 23 percent of the nation’s population that is either unemployed or under employed, my concern for me and for others may not amount to much. However, people do need to work and investors do want to increase their return on investment. The current turn of events does not bode well for either group.
If President Obama isn’t the extreme ideologue that I, and many other political conservatives believe him to be, he will begin offering a clear and decisive legislative agenda that is pro business. With that, he might even convince the Republicans in the House of Representatives to go along with some fiscal reforms that would reassure the business and investor class in this country. Given his prior behavior, however, I am concerned that his narrow win will be hailed as a mandate and the ideological war will continue. After all, it costs him nothing at this point to blame all of the nation’s ills on Republicans, rich people, etc. The politics of envy seems to be where we will remain, with constant demonization of successful people who wish to retain what they’ve earned, and calls for “fair” taxes and punitive business legislation that cause the investor class to retreat further into their current strike mode.
Americans have survived civil war, depressions, recessions, massive epidemics, world wars and the ever shifting changes in technology and population. I have confidence that we will persevere through this current malaise, as well. However, that is not to say that we won’t pay a heavy price if we get things wrong. May God bless the President, Congress and other members of our government with wisdom, humility and charity as they lead us through these difficult times.
Thomas A. Hall
If President Obama isn’t the extreme ideologue that I, and many other political conservatives believe him to be, he will begin offering a clear and decisive legislative agenda that is pro business. With that, he might even convince the Republicans in the House of Representatives to go along with some fiscal reforms that would reassure the business and investor class in this country. Given his prior behavior, however, I am concerned that his narrow win will be hailed as a mandate and the ideological war will continue. After all, it costs him nothing at this point to blame all of the nation’s ills on Republicans, rich people, etc. The politics of envy seems to be where we will remain, with constant demonization of successful people who wish to retain what they’ve earned, and calls for “fair” taxes and punitive business legislation that cause the investor class to retreat further into their current strike mode.
Americans have survived civil war, depressions, recessions, massive epidemics, world wars and the ever shifting changes in technology and population. I have confidence that we will persevere through this current malaise, as well. However, that is not to say that we won’t pay a heavy price if we get things wrong. May God bless the President, Congress and other members of our government with wisdom, humility and charity as they lead us through these difficult times.
Thomas A. Hall
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