Business Becomes the Target

By Thomas J. Donohue
November 2000

Vice President Al Gore apparently believes he has hit upon the formula that will propel him to the presidency: take credit for a prosperity he didn't create while viciously attacking the institution that did, American business.

In fact, despite today's historic business-led expansion, three out of four candidates — Ralph Nader, Pat Buchanan and Al Gore — have made business-bashing themes the centerpieces of their campaigns.

That's no surprise in the case of Mr. Nader. He considers all industries evil, except one — the trial lawyer industry. Pat Buchanan's paranoiac views about corporate America are wearily familiar to us as well. Put two or more businesspeople in the same room and Pat will no doubt see a deep, dark global conspiracy.

But we expect more — and better — from Al Gore. Starting at the Democratic convention, and as recently as Tuesday's town hall debate, his harsh rhetoric targeting the drug, insurance, HMO, oil and tobacco industries sounds a lot like Ralph Nader and Pat Buchanan — except of course the Gore campaign continues to take our money!

The Vice President and his running mate, Sen. Joe Lieberman, have perfected a bad cop-good cop routine. Gore attacks business loudly and publicly; then Lieberman quietly performs the clean-up operation, putting out the word that their administration would not be "anti-business." Other Gore backers have also told us not to worry. It's just rhetoric, they say, with no practical application to policy.

But words count — and considering it is Gore and not Lieberman who heads the Democratic ticket, Gore's words count more than his running mate's. A would-be president's words help shape public attitudes and set the political tone, which lay the foundation for policy.

The fact is that much of the credit for our nation's longest-ever economic expansion belongs to American business.

This expansion straddles two administrations and both parties' control of Congress. It began in April 1991 — some 20 months before the Clinton-Gore administration even took office. It is the product of difficult decisions and great innovations by American industry to restructure, downsize, invest in research and development and expand international markets. It was spurred by tough global competition. It was aided by policies to deregulate the economy, reduce taxes, expand free trade and bring monetary policy under control. Federal spending restraint and welfare reform helped as well, policies initially resisted and vetoed by the Clinton-Gore administration.

Most importantly, today's prosperity is fueled by remarkable advances in technology that have sharply boosted worker productivity and created tremendous global business opportunities for the United States.

Gore's attacks are especially ironic because virtually every political analyst in the nation will tell you that it is the business-led prosperity that accounts for the relatively strong political position Al Gore finds himself in today. After all, as the custodian of the party in power in the White House, how much chance would Al Gore have to be elected president if either the reality or the perception of a recession were in place as voters head for the polls?

Ask George W. Bush's father.

I suspect the Vice President understands this, but instead of acknowledging it, he is stridently attacking an industry that has created life saving medicines that in the 20th century helped expand our life expectancy by 30 years. He has attacked an industry that provides us with the cheapest energy in the industrial world to fuel our cars, homes and businesses. He has attacked industries that provide health care to tens of millions of Americans and insure virtually all of us from life's calamities.

Together, these targeted industries account for millions of jobs and billions of exports. Many of the average Americans Al Gore claims to champion own stocks in these companies either directly or indirectly through their pension funds, investments they will depend on in retirement.

Where is the Al Gore who soundly defeated Ross Perot in a debate over NAFTA and free trade? The Al Gore who stood with us on limiting Y2K-related lawsuits and passing China PNTR and who has shown a keen interest in fostering the growth of American technology and its applications? Let's hope this Al Gore reappears again soon.

By generating economic prosperity and thus a favorable political climate for incumbents, America's business and entrepreneurs helped put Al Gore where he is today. They will determine the political future of the new president, no matter who he is.

The next president must work as a partner with the private sector on a growth agenda for America. Only with continued economic growth can our nation continue to raise living standards, support 76 million retiring baby boomers and improve education, the environment and our national defense.

Insulting American business and poisoning the atmosphere for sound economic policy may turn out to be good politics, but they won't do a thing to ensure America's prosperity.

Thomas J. Donohue is President and CEO of the U.S. Chamber of Commerce.