| merican economy can go either way according to | | | | Strong Law Enforcement: It may seem silly and out of |
| most newspapers and television commentaries. The | | | | place but a strong law enforcement system helps to |
| experts say that we have a 50% chance of going into | | | | keep the business environment fair and equitable. |
| a recession while some say we have almost no | | | | When businesses can be cheated when making |
| chance. Trying to decipher their confusing messages | | | | partnerships, employees embezzle and politicians |
| can be difficult. That leaves most American | | | | bribed there is lots of risks built into the environment. |
| businesses unsure of what the future holds for them. | | | | Businesses want to know there is a deterrent and |
| Are they still going to be able to compete or are they | | | | opportunity to regain what is lost through unfair |
| going to suffer a slow and painful decline downwards. | | | | practices. You will find that China as well as most |
| The best way to answer that question and determine | | | | nations outside of Europe or the U.S. has difficulty |
| how to improve the business environment is to look at | | | | curbing crime. |
| the American businesses strengths and weaknesses. | | | | Sound Fiscal Policy & Self Adjusting Markets: |
| Success and failure is all about strengths and | | | | American policy makers have been generally |
| weaknesses. When we rationally see the strengths | | | | concerned with how well the economy is doing. The |
| and compare them against the strengths or | | | | democratic system allows the population to remove |
| weaknesses of other countries we can better | | | | senators, presidents and congressmen out of office |
| determine our chances of success. It is almost the | | | | when they are not producing results. Therefore, a |
| same as when you bet on two boxers one of which | | | | single politician can complete little damage in a single |
| has endurance and the other one quickness. The one | | | | term. When small mistakes happen the markets can |
| you feel will win depends in part on how you see the | | | | adjust themselves by offering something new that |
| situation. If you feel the quickness will take out the | | | | makes money. For example, if people demand |
| opponent in the first few rounds then he is the better | | | | companies to reduce pollution then these consumers |
| bet but if you feel that the two boxers are going the | | | | will gravitate towards clean businesses while leaving |
| distance then endurance counts. | | | | the rest of the businesses behind. |
| Looking at the American business world and | | | | Weaknesses of the American Business: |
| comparing it to the challengers you can also see | | | | Poor Public Education: The American education |
| better who is going to win in the end. We know that | | | | system is declining and children are falling behind much |
| the world is a high-tech place where efficiency and | | | | of the world in terms of science, languages, math, and |
| cost matter. The one who produces the cheapest | | | | more. The advancement of these core subjects are |
| products is likely to win as long as their products have | | | | important for the improvement of society as the new |
| reasonable quality and don’t break down often. | | | | high-tech world will need scientists and technology |
| With Chinese cheap products and America’s | | | | workers like never before. However, as we keep |
| high quality both countries will need to come closer to | | | | allowing skilled workers to immigrate our school |
| the middle. | | | | systems are falling behind only because there is little |
| Strengths of American Businesses: | | | | direction and lots of politics. |
| High Technology: Powerful and growing businesses | | | | High Labor Costs: Workers are cheaper then they are |
| require email, Internet, cell phones, computers, robots | | | | in other countries. The problem in the U.S. is that |
| and more. The technological advances of the U.S. are | | | | companies aren’t getting what they are paying |
| difficult to surpass and few countries even come | | | | for. The average high school graduate is barely able to |
| close. American businesses can grow simply because | | | | grasp the concepts of a manufacturing business let |
| they can manage different international locations as | | | | alone work within it while the government raises the |
| though they were a block away. Few foreign countries | | | | minimum wage. A Chinese worker is able to press a |
| can do this. In addition, America also has the ability to | | | | button like the American worker but for about 1/10th |
| develop and implement modern technology like robotic | | | | the cost. Only productivity will make the American |
| arms and complex systems that increase productivity. | | | | worker worth his/her wages. |
| Power Supply: China is attempting to get its hands on | | | | Taxes: American businesses pay a lot of money in |
| as much natural resources and energy as possible. | | | | taxes while companies from other countries may pay |
| The U.S. is also doing this but is much further in the | | | | a lot less. The taxes in American businesses are |
| game. While the U.S. is moving towards alternative | | | | simply extra overhead that must be pulled from the |
| energy supply and thinking beyond fossil fuels China is | | | | cost of the product. In a tight economy where people |
| still trying to accumulate basic energy. American | | | | don’t want to pay extra the cheaper products |
| businesses have no problem with black outs, rolling | | | | (with less tax burden) will win out. Have you ever |
| power outages or a lack of energy. This is a benefit | | | | wondered what happened to the television and radio |
| because their environment becomes predictable. | | | | producers in the U.S.? |