The White House is attempting to build bridges to the business community in a model that would well serve California.
President Barack Obama has invited corporate leaders to a meeting today to encourage corporations to start hiring and investing to perk up the economy. The Federal Reserve estimates American companies have nearly $2-trillion in cash reserves. Spending that money on new hires will cut into the unemployment rate as would investing in new equipment.
Another avenue I have suggested on this site is for corporations to loan to small businesses, which would boost the small business section of the economy in desperate need of capital. Small businesses can be job-creating machines if they have the available resources.
California companies will be represented at the White House meeting with the president, including Google Inc. and Cisco Systems.
One can see a comparison with the administration attempting to work with the business community after a period of political disagreements with a similar situation in the state.
On the national level, the business community, generally, has been at odds with the Obama Administration over a number of issues including the health care law. The US Chamber of Commerce was a leading critic of the Administration leading up to the mid-term election. However, the president’s position on the tax law is viewed more favorably by business and opens the door to negotiations.
The president sees an opportunity to work with the business community on the economy and has reached out to the business community with his White House invitation.
In California, the business community largely supported Meg Whitman over Jerry Brown in the gubernatorial contest. Yet, as with the national situation, the economy, unemployment and California’s precarious fiscal situation are the leading concerns for both the new governor and the business community.
An effort to bridge the gap caused by the recent election, following the White House pattern, could have the business community and the new administration working together to try and solve California’s budget and economic problems.