Wall Street Journal: voter unease a danger signal

For two decades now, Corporate America has been engaging in an increasingly virulent practice of layoffs; initially for valid competitive reasons, outsourcing is the latest manifestation of business practices that put little or no value on the company's human capital. Amidst the worst of these practices there has been little in the way of public censure. Business has felt no check from society, no negative impact at all from its short-term, bottom-line-at-all-costs orientation.

But as Wall Street Journal columnist Alan Murray pointed out this Wednesday, something seems amiss. In the midst of a strong economy, historically low unemployment, and inflation under 3 percent majority of voters disapprove of President Bush's handling of the economy.

...the economic backdrop for election 2006 should raise a warning flag about the future. Large numbers of Americans seem to have lost their belief in John F. Kennedy's famous aphorism that a rising tide lifts all boats. "They know the economy is white hot," says political analyst Charlie Cook, "but they also know they aren't in it....There's a feeling that some people are getting theirs, but we aren't getting ours."

Corporate America may be on the verge of discovering that their actions do indeed have consequences.

The danger for business is that the broad social support for pro-business and pro-market policies that has characterized American politics for a quarter century or more could be breaking down.

...A Democratic wise man told me recently that if he were asked what economic platform would offer a Democratic presidential contender the best chances of success in 2008, he would have to say it's an antitrade, antiglobalization, anti-immigration platform. For now, none of the best-known possible Democratic candidates -- Hillary Clinton, John Kerry, Al Gore or, the latest fad, Barack Obama -- are taking that tack. But the problem here isn't Democratic leaders. It's Democratic followers. If the reservoir of dissatisfaction grows strong enough, it's only a matter of time before some candidate figures out how to tap in.

The election in 2008 could be the one where economic issues come back, and with an antibusiness vengeance.

Yes, layoffs and outsourcing may have temporarily looked good on the balance sheet. But how do those gains compare to the cost of destroying the pro-business environment that has existed in this country for a generation.

Unbridled layoffs, quite differently from being the bottom-line savior they are cracked up to be, might end up accomplishing something wholly different.

They may kill the golden goose.

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