This is not a political article but a juxtaposition as a Venture Capitalist hiring a turn-around CEO for the United States of the 2016 Presidential Candidates. If we view the U.S. economy as a company that needs to be managed, we may breakdown the economic potential in terms of Products, Processes and People. Let us view the measurements of “Products” as GDP, “Processes” as monetary, fiscal and regulatory policies and “People” in terms of defining the approach to achieve worker satisfaction.
Products then are historically low with GDP growth below population growth causing declining wages. Processes are counterproductive in stifling the banking sector and small businesses with layers of regulatory complexity where there is no cost benefit analysis and little to no adverse impact study. Processes of monetary policy are seen to be intrusive attempting to fix non-monetary policy problems. The adverse impact of intrusive monetary policy is not measured but reflected in asset price bubbles. Processes of fiscal policy failures are also not measured. For instance, what benefit has there been increasing national debt by $10 trillion in the last eight years? What about People? Policies that detrimentally affect the People component are those that decrease personal liberties, increase government dependency, lower the standard of living or corruption.
What subjects should not be considered political or under the auspices of a U.S. President? Presidents are not the Supreme Court nor Federal Court jurors. The subjects of homosexuality, abortion and race should stay outside of Presidential consideration and debate. These are legal not executive issues.
So what would a turn-around manager do to unleash the economic potential of the U.S.? We must take the approach of a venture capitalist adopting policies that improve Products, Processes and People.
Here is a juxtaposition of a Venture Capitalist’s view for a turn-around CEO of the United States if it were an enterprise seeking to optimize its economic potential: