We Are Not Alone
By Leo Brown
[President Obama's Weekly Address]
About a month ago, the traffic on this blog doubled. I couldn't figure it out. Had I become more insightful? Maybe some post had gone viral?
As it turned out, all of the new visitors were from Siberia, where I now live. Because many of my Russian friends and acquaintances want to read what I have to say. In Novosibirsk, direct communication with an American is a rare opportunity. Some people may be less interested in my ideas and simply want to practice their English. Whatever the explanation, my audience has swelled and continues to grow at a quicker rate than before.
This is an opportunity for growth that had not occurred to me, and many American businesses operate with the same narrow perspective. As President Obama mentions in his weekly address, 95% of the world's consumers live beyond our borders. But according to this Washington Post article, 99% of American businesses do not export their product.
Of course, some businesses, due to their size or industry, should not export. But 99%? This couldn't be optimal.
Existing trade laws and tariffs are less then ideal, but President Obama is working to fix this. The trade deals he announced during his Asia Pacific tour will help. The President has repeatedly signalled, through both words and action, his commitment to uphold the campaign promise of doubling American exports by 2014. Based on these facts, we can reasonably expect the government to support an economic climate conducive to exports.
But for all the government can do, American businesses need to open their minds. Because consumers are consumers, whether they hail from Westchester or Tajikistan. Americans may not be buying like they used to, but this needn't destroy our economy. By investing in international market research, businesses might realize opportunities far beyond what a healthy American economy could ever provide. We need to aggressively court the international consumer base rather than treating it like a cheap sideshow.
By viewing the global economy with a wide lens, we can continue to grow as a nation. If we repeat the mistakes of the last ten years or the habits of the last century, the world will leave us choking on its fumes.
Why does it come as a surprise that 99 percent of US businesses don't export? More than 99 percent of US businesses are independent and have <500 employees. Maybe small business owners will start "opening their minds" once the GOP realizes who the real "job creators" are and gives the right people the tax breaks that will let them afford to invest in international market research.
ReplyDelete"More than 99 percent of US businesses are independent and have <500 employees." Interesting and relevant figure that I had not seen. And no argument here - we need tax breaks for small businesses in order to keep them viable.
ReplyDeleteI guess my main concern is that if you gave all these businesses a tax break, many would not invest in international market research, simply because that's not something they've ever done. Small businesses, especially ones that can't afford fancy consulting firms, have been narrow-minded and inefficient before. So maybe future tax breaks could include some incentive to at least encourage exploration of foreign markets.