The GOP has always been presumed to be the party of business, but with friends and supporters on the boards of major conglomerates and Wall Street banks, President Barack Obama has presided over a growing political and philosophical divide in the American business community with big business drifting further away from the Republican Party and small businesses as vocal as ever against Democrats. William Galston writes in The New Republic on some of the reasoning for why small businesses and large corporations are beginning to drift apart on politics:
There are deep and structural differences between these two sectors. Most small businesses pay taxes through the individual code, while big businesses pay corporate rates. Small businesses typically hire through family and local networks, while big businesses draw from a national labor pool. Small businesses focus mainly on the domestic market, while big businesses are just as concerned about overseas sales. Corporations have sizable cash flows and access to credit markets, which gives them a cushion against adversity and added costs; small businesses often operate much closer to the margin and are acutely sensitive to policies that threaten to drive up costs. Corporate CEOs can hire experts to help them cope with added regulatory burdens and can spread the costs over a large workforce; small business owners must deal with these burdens by themselves and have few ways dilute their impact.
On ‘Real News‘ Friday the panel discussed how the Obama administration is forming an alliance with big business, and what consequences such a partnership would have on the economy and middle class: