"Mr. President, if you ask me..." (experts analyze challenges of the new US administration)

"Mr. President, if you ask me . . ."

During the heat of the campaign rhetoric last fall, we asked some senior financial executives to step back and consider the challenges that will face the new administration taking office in January. What is the most important message you would want to give the new president, we asked. What is the most significant issue he faces?

As expected, these executives focused on business and economic issues. But perhaps it should be no surprise that many of them also chose to address questions facing their particular industries.

Here, then, is a cross section of the views of senior executives in corporate America--all FEI members--about the environment business needs to operate in if it is to compete internationally in the coming decade.

Stop mortgaging our future

The greatest problem we face today is that our nation, as a whole, is living well beyond its means. Examples of this are massive government budget deficits that are financed mainly by debt; the increasing use of leverage by corporations, exacerbated by the move towards leveraged buyouts; and the overuse of credit by individuals. My greatest concern is that we are paying for this by mortgaging our future. I am greatly concerned about what this will do to our children, who eventually will have to pay the bill.

If we agree that the above is a problem, and I think most people do, it seems to me that the federal government must take specific steps both to spend less and to increase revenues. I am very interested in learning what specific steps the new president will propose. How will he insure that we have the discipline to do what must be done? And now that the campaign rhetoric is behind us, what tax increases will he be willing to impose? Will he be willing, for example, to provide the leadership to implement a value-added tax, which would not only raise revenues but should also help to dampen spending?

The problem that we face as a nation living beyond our means is a very real one. The damage to our children's future could be overwhelming. The early days of our new administration will provide the president a wonderful opportunity to address this problem forthrightly and provide the leadership to do what is necessary.

Reform the Glass-Steagall Act

The international competitiveness of American business is a key issue for our new president. Our country has been plagued by serious trade deficits over the last several years, and concern with these deficits has led to appeals for trade barriers and protectionism. The president should resist any temptation to endorse such measures, though they may have appeal as a "quick fix," because in the long run they can be only destructive. Instead, the president should direct his energies toward steps that can be taken to enhance the ability of...