Public v Private Sector 9-11-24

The article below gives us a time-capsule back to 1980 

Divorce Court: Business vs. Government

Who will win the custody of their child, the United States of America

By Norb Leahy, Kansas Business News, October 1980

As political campaigns build to their climax, we in business need to make our views known to our perspective legislators. Because the views of those closest to our legislators help shape the legislation that will characterize the 1980s, we in business must become those advisors.

Knowing that politicians are constantly hassled, we may be tempted not to bother the poor guy. This attitude leads to feelings of isolation, alienation and indifference. Do we, as businessmen feel indifferent about the upcoming elections? Are we unexcited and perhaps a little cynical about the process by which our legislators write and pass our laws? Do we feel betrayed and alienated from government? Do we feel helpless? Do we feel that trying to operate a business today has been made more difficult by government? Many business people say “Yes” to these questions.

A mere 20 years ago this wasn’t the case. Businesses tended to defend government.  Except for a handful of vehemently anticommunist writers, the growth and power of the federal government, as well as the social and regulatory legislation was viewed as a necessary evil at worst. Government and industry were purported to work harmoniously to build the economy.

The bottom line is that when times are bad, people need money to eat and pay their bills. When times are good, people need to save for when times are bad. How did thie supposed partnership decried in the 1960s as the “military-industrial complex” become the estranged couple of the 1980s. In the 1960s, these and all other institutions were referred to as “the establishment”. Radicals claimed that the ills of society were caused by “the system”. Today, the ills of society are caused by the lack of “ the system”. The attitudes on both sides resemble the classic adversary relationship.

Besinessmen are convinced that many government agencies are to be avoided and that they will not contribute to the well-being of their enterprise. Government people are convinced that unless business is harassed, we will not follow the regulations they’ve been hired to enforce. Over the years, many government functions have been thrust on business in the name of efficiency. Business serves government as a tax collector. Business employs people and machinery to withhold state and federal taxes from paychecks. Social Security Tax is withheld and matched. Worker’s compensation Tax, Unemployment Tax and other taxes on the business are calculated and paid to the government.

In addition, business is charged with designing and implementing procedures to ensure that other government regulations are adhered to. These include the wage-hour laws, laws ensuring equal opportunity in employment and promotion, equal pay, laws protecting employee’s rights to organize or refrain from having to join unions, laws calling for the employment of handicapped, veterans, minorities and women at all levels. There are laws prohibiting discrimination, laws governing profit sharing and retirement plans and a host of others with corresponding reports to be deciphered, completed and submitted.

When the government announces that nitrates used in meats might cause cancer, business paid the price for ensuring that no nitrites were not sold.

Published in Kansas Business News, October 1980

Comments

The top Tax Bracket from 1945 to 1963 was 91%. It was lowered by JFK and became 77% in 1964. It was lowered from 1965 to 1980 to 70%.

Inflation was high in the 1960s and 1970s. The election in 1980 ushered in Ronald Reagan. The top US income Tax Rate was 70%. He lowered it to 50% and 1988 lowered it to 28%. Clinton raised the top rate to 39.6% in 1995. Trump lowered the top rate to 17% of income over $500,000 and lowered the Corporate Tax from 35% to 21%.

If you liked this time capsule, read the posts on this Blot from March 2010 forward.

Norb Leahy, Dunwoody GA Tea Party Leader