Friedman on CEO's

     Thomas L. Friedman's column in today's New York Times, "CEO's M.I.A.", is a classic. He complains that United States CEOs are not stepping up to the plate and lobbying for political reforms necessary to keep the country competitive in the global markets.  The result?  We will be a third behind China and India in economic "power."  Using a paper title by David Rothkopf we will no longer be "Running the World."

     What political reforms should CEO's support?  Some form of national health coverage; more federal money for science research; a "sane" energy policy; successful completion of Cafta and WTO agreements; and an end to "reckless deficits." 

    There is much to say in response.  First, CEO's main responsibility is running their companies to make a profit, not running the country.  The legal system is the primary responsibility of our elected politicians, who should consult with, among others, our CEOs when they legislate on financial matters. 

     Second, CEOs are not of one mind on the list of issues Friedman wants resolved.  For example, national health coverage and a national energy policy are code words for a socialization of an otherwise private system.  Many believe, as I do, that relying on a private system is preferable to a federalized system in either health or energy.  Reckless deficits is a code word for the budget problems caused by the Iraq war.  Some CEOs may support the our government's efforts there and understand that war related deficits are inevitable. 

     In other words, Friedman wants CEOs to lobby for Friedman's personal policital agenda.  And if they do not, China will eat our lunch?  How silly is this.

    Our CEOs will best determine how we compete with China and India by doing a good job running their companies.  The most we can expect from our CEOs is that they understand the importance of our government's legal regulations of American business and that they communicate their views, which will often clash, to our elected officials.  It is our elected officials that can aid, at the margin only, the CEOs in running their businesses by creating a legal climate that facilitates and does not retard their efforts.