What the local 1% thinks about the economic outlook for 2012

It is nearing the end f 2011 and that often means that people are looking to next year, sometimes even making predictions.

This is what one of the main business publications did in its year-end issue. They asked West Michigan business leaders to comment on what they thought the 2012 economy will look like.

The “economy” is one of those nebulous terms that suggest there is this large entity that we all participate in. While it is true that national and international economic trends do impact all of us, the economy is not some hegemonic entity that only functions one way. Indeed, in the age of speculative capital, people can make money without producing anything tangible.

The US economy is a form of neo-liberal capitalism, where the state is highly protective of the market and taxpayers often subsidize big business. Some companies still produce products and in that model make profits off of the labor of workers. So, it is not surprising that a business publication asked business people and not workers to predict the economic outlook for 2012. Working people would have a lot to say about the economy, but as it is with news coverage in general, their opinion don’t matter that much unless they are speaking as consumers.

What the local 1% thinks about the economy

MiBiz asked dozens of business leaders to chime in and offer a brief forecast on the economic outlook for 2012, particularly for West Michigan. As could be expected most had positive things to say about the economy in West Michigan considering many of those business leaders saw significant profits in 2011 and have enjoyed the benefit of state and regional policies that favored business over labor.

Curt Pullen, the executive VP at Herman Miller said, “Despite lingering uncertainties, we believe that our people, with our highly responsive business model and proven ability to execute our strategy, will enable us to continue to grow and prosper.” At some level you have to admire the way that business people talk. It seems as though Pullen is only referring to his company and not the economy as a whole, thus we could translate his comment as they will continue to make profits by marketing office equipment around the world, benefiting from trade policies that have opened up foreign markets to US manufacturers.

Joseph Papa, CEO of Perrigo, had a similar statement that focused on his company’s economic outlook. “With the continued shift in consumer behavior to store brands, we’re confident that any economic impact will only enhance the benefits to Perrigo and its customers.” Well, in a profit based health care system, Perrigo is certain to continue to make significant profits.

Mitchell Watt, President and CEO of Triangle Associates, thinks there will be a slight decline in revenue in 2012. This is the case for his company, which has been making significant amounts of money in recent years from taxpayers when school millages are passed. “There are pockets of opportunity in the college market, particularly those with private allocations. In the K-12 market, we see a slight decline in the quantity, value and passage success rate of bond referendums due to continued public concerns over the slow economic recovery.”

Cascade Engineering CEO Fred Keller also sees a positive outlook for 2012, especially for his company. His statement touts their sustainability projects, but then he admits that the main profit growths will be in the sectors that make containers and truck parts. So much for sustainability.

Carl Erickson, President of Atomic Object, is pretty excited about the future. He says, “Strong corporate earnings and new sources of venture and angel money in Michigan fuel the demand for software development from both large companies and startups.” Not a surprising statement considering who is on their client list.

Tom Fehsenfeld, President of Crystal Flash and founding member of the West Michigan Sustainable Forum, had this to say. “One of our major businesses is selling diesel fuel, and diesel is a good index of the economy because it moves goods. In the last few months we are seeing some solid increases in year-to-year sales trends.” More diesel fuel sales are good for Crystal Flash, but not so good for the environment and public health.

The duel leaders at Amway, Steve Van Andel and Doug DeVos, are delighted with what 2012 has in store for their company. “Our optimism is because direct selling continues to have great appeal for people in our top markets, including China, Japan, the US, Korea and Russia. The industry has become a $132 billion global industry that provides an opportunity for almost 90 million people to sell own their own business.” Translated, this means that those near the top of the Amway pyramid will make a ton of money off of those who do the actually selling at the grassroots.

In another section of the MiBiz publication there are several business leaders hoping for a push in 2012 to make Michigan a Right to Work state. One example is Tim Schowalter, CEO of Pioneer Construction, who says, “I think Governor Snyder has been doing a great job providing leadership in Lansing particularly in regards to balancing the budget. I would like to see him champion the Right to Work legislation so Michigan will be more attractive to major companies looking to locate here.” Translated, this means dismantle labor unions so that companies can make even bigger profits.

One additional question posed to area business leaders had to do with the 2012 election and its impact on the economy. Some thought that the partisan bickering is bad for business, but Robert Roth, CEO of RoMAn Manufacturing Inc. had the most honest assessment when he said, “Quite frankly, if Obama wins and we retain a Republican House and enough Republican power in the Senate, it will be more of the same.”

While these statements are short, they do give us a window into the mindset of the local 1%……and it doesn’t look good for those of us who make up the 99%.