While the candidates’ policies on start-ups may seem irrelevant, more and more tech entrepreneurs are heading to California. Election talk on start-up incentives is crucial to them, especially as the Australian Government continues to cut export benefits.
Romney’s benefits are quite attractive. They include:
Obama, unfortunately, isn’t offering very much new. In his campaign speeches he’s emphasised previous achievements, including:
On the face of it, both candidates provide some good incentives for start-ups. But Obama doesn’t seem to be offering anything new.
So this one’s Romney – but only by a whisker. Obama’s introduced some great initiatives, but so far he hasn’t put anything new on the table specifically for start-ups.
It can be good for the local economy when an international firm opens a base here, or transfers some production here. But offshoring has been a key part of the campaign trail so far, with Obama accusing Romney of sending jobs outside America to foreign nations.
Romney has argued for more trade agreements, suggesting they are an avenue to economic growth. Obama, on the other hand, is more protectionist. He wants to reform the tax law to cut any benefits for businesses which send jobs offshore.
In fact, he’s also offering incentives for American companies which keep jobs within the country’s borders.
While Obama may be attacking Romney for sending jobs offshore, the fact is some of those jobs can help Australian businesses, while increasing trade will no doubt have a flow-on effect. Romney wins this round.
The two presidential candidates have very different approaches to foreign affairs.
Over the past few years, Obama has done a lot to foster goodwill around the globe, winding down two wars and meeting with various world leaders – including our own. This is his area of expertise and he’s handled it extremely well.
Romney, on the other hand, is much more aggressive with his rhetoric – especially towards China.
While Romney encourages international business, he’s adopted a stern approach to the rest of the world with regard to Iran, the Middle East in general and relationships with key leaders in Europe. Insulting the London Olympics didn’t help, either.
Romney’s harsh words have raised a few eyebrows – especially when during the debates he called China a “currency manipulator”.
Obama has been a breath of fresh air when it comes to foreign policy. Romney may talk big, but the fact is disrupting any relationship with China – especially as a new player – is a foolish effort. Australia depends on a strong Asia-Pacific, and the goodwill Obama has fostered so far needs to continue if local businesses want to see any benefit.
While we’ve looked at the issues individually here, the presidential election’s effect on Australian businesses can’t be assessed in a vacuum.
It’s true a Romney election would certainly provide some short-term economic relief for business in the United States, and it may even result in more companies hiring staff. And for tech start-ups, the Republican’s planned expansions would be a delight.
But we have to weight our decision towards fiscal solvency. Obama has a plan to stabilise debt and deficit spending. Romney has no such plan – only a promise to cut loopholes and deductions. He cannot name any of those deductions and, indeed, analysis has shown this will end up reducing government revenue significantly.
In an economic recovery likely to last several more years, this is a critical problem.
Obama has been good for business. He has introduced more support for start-ups and opened up access to new funding methods. What Australian businesses need is a prolonged period of economic stability. Obama’s election would ensure continued strong foreign relations, a plan to stabilise debt, and a strong emphasis on international cooperation. Most importantly, it would ensure the international economic recovery would continue unabated.
Romney’s election would bring too many economic question marks. An Obama win may not bring short-term perks, but would ensure long-term economic stability.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
