President Joe Biden is known for his tough stance against corporate America while on the campaign trail.
In an effort to address economic inequalities, the Democrat candidate is advocating for businesses to pay higher taxes. He attributes the surge in prices to the greed and manipulative tactics of many companies, leading to what he refers to as “greedflation” and “shrinkflation.”
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- 1 BIDEN AND TRUMP ARE BOTH COURTING BUSINESS
- 2 WHAT CEOS ARE TELLING THE WHITE HOUSE
- 3 THE RACE TO IMPROVE WORKERS’ SKILLS
Over the past few months, the Biden administration has been actively engaging with CEOs and other corporate leaders to understand their requirements. This outreach is treading on the ground that former President Donald Trump, the Republican nominee, considers his stronghold within the business community.
As we approach November’s election, both candidates are eager to convey to voters that they possess the ability to collaborate with employers. The current political climate has created a deep divide within the electorate, making many companies hesitant to take a public stance on political issues.
The Biden administration is reaching out to business leaders, seeking their input on how to further boost investment in the already thriving economy. They acknowledge the current state of the economy, yet are open to hearing from industry experts for ways to enhance it even further.
According to Lael Brainard, who is the director of the White House National Economic Council, the individuals seeking help can rest assured that their concerns will always be heard. The team is focused on practical solutions that can solve problems for the people they serve.
BIDEN AND TRUMP ARE BOTH COURTING BUSINESS
On Thursday, Trump will make his case to the Business Roundtable, an association of over 200 CEOs, on why the economy would benefit from his return to the Oval Office.
Although Biden was invited to attend, he won’t be able to make it as he will be attending the Group of Seven summit of world leaders in Italy. To ensure that the president’s vision is still presented, White House chief of staff Jeff Zients, who is also a former CEO, will be stepping in to pitch to the group.
As someone who hails from Delaware, known as the “corporate capital of the world,” Biden has always strived to strike a balance between the interests of businesses and workers. He has often been careful not to criticize companies too harshly, recognizing the importance of their contributions to the economy.
As a billionaire property developer, Trump has built a reputation for himself. He has also marketed a variety of products, such as educational courses, steaks, and neckties. Additionally, his namesake company, Trump Media & Technology Group, is publicly traded on the stock market.
During his term, Trump reduced corporate taxes and committed to reducing regulations. As a result, he has garnered support from prominent Wall Street figures, including Stephen Schwarzman, who dubbed him a “vote for change.”
According to The Washington Post, Trump has requested financial assistance from executives in the oil industry to support his campaign. The report claims that Trump believes his administration would generate substantial profits for these executives, but the Trump campaign has denied these allegations.
Despite the low 4% unemployment rate and the rising stock market this year, President Trump has repeatedly described the U.S. economy as “horrible.” His argument seems to be resonating with voters, given the spike in inflation in 2022. This has left many U.S. adults feeling pessimistic about the state of the economy.
According to Karoline Leavitt, spokesperson for the Trump campaign, both business leaders and working families are eagerly anticipating the reinstatement of common-sense policies such as tax cuts, deregulation, and increased production within the oil and natural gas industries.
WHAT CEOS ARE TELLING THE WHITE HOUSE
During their outreach to businesses, Biden’s top aides have received a different perspective on the economy from what Trump has been promoting. According to administration officials, the CEOs they have engaged with are generally content with the stock market’s performance and the overall state of the economy, with inflation having eased without any feared recession.
The Biden administration has stated that American business leaders are actively seeking solutions to maintain and increase growth. One of the major issues they face is a shortage of skilled workers to fill open positions. Additionally, they are advocating for streamlined government permitting processes. Furthermore, they are in agreement with the administration’s efforts to renew corporate tax breaks for research and development expenditures.
According to several officials from the Biden administration, corporate executives have shared apprehensions about Trump, despite White House-CEO discussions being solely focused on matters not related to the November elections. The implementation of tariff increases, which was a key agenda item for Trump, runs the risk of disrupting trade partnerships and potentially damaging corporate earnings. Additionally, any attempt by Trump to exert control over politically independent agencies like the Federal Reserve or undermine the rule of law, which has long been an essential aspect of American capitalism, could cause a significant drop in stocks and bonds.
At the request of Zients, Biden’s team ramped up their efforts to connect with CEOs and former CEOs. In February, the chief of staff organized a dinner with six other high-ranking officials to develop a plan for more frequent communication with these business leaders.
In April, the group of officials made a commitment to engage in conversations with 10 CEOs each. Their outreach efforts were successful, as they ended up speaking with over 100 CEOs by the end of the month. As a result of this outreach, President Biden had the opportunity to meet with eight CEOs in May, including those leading United Airlines, Marriott, Xerox, Corning, and Citigroup.
After engaging in discussions, Deputy Treasury Secretary Wally Adeyemo expressed that he gained a deeper understanding of how various issues intersect. It became apparent that the administration’s renewable energy initiatives played a crucial role in the development of the data centers that are instrumental in the functioning of artificial intelligence.
According to Adeyemo, the administration has made progress in reducing the amount of federal paperwork required for permitting, resulting in shorter processing times that previously lasted up to two years. Additionally, due to the loss of funding for certain workforce programs that were linked to pandemic-related federal aid, the administration is exploring the possibility of companies taking over the financing.
The administration is making a compelling case that their plans for growth will benefit the economy as a whole, ultimately resulting in increased profits.
Adeyemo emphasized that they do not make false promises of agreeing with the business community on everything. They value feedback and are open to continued communication with them.
THE RACE TO IMPROVE WORKERS’ SKILLS
During the meeting with Biden, insiders revealed that Brendan Bechtel, CEO of Bechtel Group, a renowned construction company, emphasized the scarcity of skilled labor. Due to the inability to hire the necessary workforce, some companies are forced to turn down business opportunities, which ultimately restricts their potential revenue.
According to data from the Labor Department, there are currently approximately 1.5 million more job openings than there are unemployed individuals in the job market. In the past year, companies have struggled to fill job openings because of a shortage of available workers, which has led to a decrease in the number of job postings. For instance, manufacturing companies have 516,000 job vacancies at present, compared to 647,000 last year.
For years, education policies have prioritized universities, leading to a scarcity of tradespeople like welders, plumbers, and electricians. This, coupled with a robust job market, has resulted in a significant shortage of skilled workers. The labor force’s percentage of men aged 25-54 has been declining for years. However, reversing this trend could bring millions back into the job market.
Harry Holzer, an economist from Georgetown University, stated that in the United States, there has been a strong emphasis on pursuing higher education, while other avenues for skill development have been neglected.
Gina Raimondo, the Commerce Secretary, has emphasized the importance of increasing the number of women in the construction industry. The success of the department’s initiative to revive domestic computer chip manufacturing may rely on having a well-trained workforce, which emphasizes the need for greater collaboration between hiring companies and relevant organizations.
Raimondo suggests that the first step towards solving the employment crisis is to focus on the employers themselves. This might seem counterintuitive, but it involves identifying the companies and determining who they intend to hire, at what wage, and with what required skills.
Raimondo perceived the problem from an economic perspective, recognizing that the dearth of skilled workers in companies could impede growth. However, she also acknowledged the cultural and political aspects of the issue. It is crucial for voters to have a positive outlook on their prospects for entering the middle class, which was one of the pledges made by Biden as he runs for re-election.
According to Raimondo, when individuals perceive that they don’t have a place in the economy, they tend to lose hope.
