Posted on Fri, Nov. 5, 2010
Big and small businesses may give up reluctance to start hiring. By Diane Mastrull In the aftermath of Tuesday's Republican trouncefest, a rare Democratic victor stepped forward to voice support for manufacturing, a oncemighty American business sector reduced to a shell of itself because of policies that have made it more attractive for companies to take their work abroad. Delaware U.S. Sen.-elect Chris Coons pledged to "help make these . . . words real again . . . Made in America." Ironically, it might be the Republican platform that helps that cause. In a national survey of 99 manufacturing executives conducted last month by Grant Thornton L.L.P., 40 percent said the best way to create jobs was to reduce the corporate tax rate; 27 percent said to cut the personal income tax. In light of the GOP's gains, said Villanova University economics professor Peter Zaleski, manufacturing should continue what has been 15 straight months of expansion, largely because "what I would expect to see out of Washington would be a more businessfriendly climate." Although inventories dropped the last couple of years, manufacturers were reluctant to hire and ramp up production, "mainly because they weren't sure whether there was going to be an uptick in demand," Zaleski said.
Page 253
2010 Media Report Villanova School of Business