Attention on Obama’s New Pro-Business Policy Change

U.S. President Barak Obama’s consecutive pro-business policies have drawn people’s attention. In the beginning of his administration, President Obama harshly criticized Wall Street and emphasized the necessity of increased regulations. However, he demonstrates strenuous efforts to construct favorable environments for business by proposing changes such as deregulations.

President Obama contributed to WSJ on January 18 and officially declared “in order to eliminate excessive, inconsistent and repetitive regulations, the federal government will conduct reexamination.” In addition, the president named William Daley, a former executive at JPMorgan Chase, as the new White House Chief of Staff and brought the Chief of General Electrics, Jeffrey Immelt to head an economic recovery advisory panel. In the beginning of next month, President Obama plans to visit the U.S. Chamber of Commerce and Industry, which has been conflicted with Obama administration, first time ever after his inauguration to make a speech.

The President Obama felt the necessity of praising corporations in order to create jobs and promote economic recovery as he made a statement that “Sometimes regulations which are meant to protect public have been suppressed innovations and pressured to corporations to foster jobs and developments rather than maintaining balances.”

This President Obama’s dramatic shifts of have great implications on us. While the U.S. provides more supports for businesses, South Korea rather keeps strict regulations. In the Fair Trade Commission, for instance, there have been large scale and strict examination of oil/sugar refining homes-shopping businesses and special cost investigations. It is a well-known fact that major companies are being investigated for suspicion of intentionally raising costs of subcontractors.

Although it is urgent to control high inflation, such actions like increasing costs of subcontractors or deliberately controlling prices will rather result in distorting flow of market order and lose vitality of business activities. In order to succeed in fostering jobs and revitalizing economy, there must be favorable environments for businesses instead of making them under strict control of governments. Thus, the meeting which held today, Jan. 23, 2011, with the President Lee and head of 30 corporations, should be the place where they share difficulties and seek solutions rather than forcing government policies on them.