How does current Political Policy help or hurt my business?

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Answered by: Jason, An Expert in the Business and Finance Category
Current California and Federal regulatory and taxation policies are hot button questions for California business. With the economic downturn, business owners and stockholders need guidance in both regulatory compliance and tax liability. More than ever, insightful, informed and honest advice about the trend current political policy and preference of elected officials can keep the modern business ahead of the game.



To assess the impact that state and federal regulations on the average business today takes more than just identifying which legislators are "pro-business." Business today needs a full picture of what a given legislator will or will not do as it pertains to personal preference and voting history. This requires an in depth analysis of legislative history on both an individual and institutional level.

Throughout the history of the U.S. Government and the California Legislature, strong, identifiable patterns have emerged during times of economic prosperity and scarcity. Political Policy tends to change with economic conditions. Legislatures and legislators tend to find more cover to fund and approve funding for local business and government when economic conditions are favorable. When economic conditions are unfavorable, legislatures tend to shrink and internalize, avoiding policies that favor expansion.



This includes pro-growth or pro-business policies. However, these patterns are predictable to social trends and individual policy makers tend to respond in predictable patterns. More than party ideology or personal conviction, the economic climate determines the outcome for current political policy.

Given this factor of prediction, the business owner who wishes to operate on the highest level needs a program that allows him/her to map this process. A well-schooled legislative analyst can provide just such a map. By noting and marking trends on an individual legislator level, the analyst can give a game plan to the business owner on how to approach expansion, hiring, pricing and dealing with tax liability. Instead of the old lobbying and influence trading that so often blighted traditional politics, business owners can now plan and focus on determining the legislative trend and place the emphasis on identifying legislators that consistently show a pro-business dint. In that way, businesses can more effectively work to influence current political policy.

The legislative trending model has several distinct advantages. First, it prevents the over-reliance on individual legislators who may identify themselves as pro business in a favorable economic climate, but during a downturn will follow a trending pattern. Second, it limits the need to use influence trading with the aforementioned legislators by constructing a model that rewards actual voting habits rather election cycle promises.

Third, the modeling gives business owners the ability to keep an independent, pro-active "free" response to legislative trends rather than a knee jerk "regressive" response to changing times. Keeping one's political loyalties and influence trading fluid and responsive makes for more intelligent and creative options for businesses who seek to ride out economic hard times. Overdependence upon single legislators or previous election cycle promises may leave limited options for business owners who are caught unprepared in current political trends and cycles.

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