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Friday, December 4, 2015

American Businesses Still Not Exporting Enough

Its wet, slippery, and continues to go down like a game of Chutes and Ladders. Its the trade deficit again. American companies are still not exporting enough products to lower the gap. The commerce department said that the deficit rose 3.4 percent to $43.9 billion from $42.5. Industrial goods and food exports declined marking slower trade. Even though it has been this way for some time it doesn't have to be.

The economy is very much tied to our ability to develop and export products that people want. Whether we are talking about Middle Class jobs or corporate profits the problems are related to the same fundamental business environment. I am believe that if we create the right environment our businesses will do a better job competing and hiring. 

This means getting two political camps, left and right, to agree on some fundamental principles about what is important. Regardless of their personal agendas, it is important to create a strong business environment that maximizes the puts Americans into meaningful jobs. How this done is a point of contention as each has a focus on one aspect or another of the economy. 

Getting back to the idea of corporate tax reform, I believe it is beneficial to lower taxes for companies; especially if they reinvest that money to expand their operations within the U.S. to provide American jobs. Only dying entities raise taxes while growing entities expand their tax base. It is much better to have more companies and people paying in then to simply raise the amount of money. 

Slowing exports has been part of the American economic landscape for decades but is preventable. Encouraging companies to invest, innovate, develop, stay, train and hire is beneficial. The incentives for doing so is should be because the American business environment is the best place to start and develop companies. Until we solve that problem everything else will be a gimmick with short term gains.

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