Don’t condemn corporate America just yet

Enron, Global Crossing, WorldCom, Tyco. These company names send

chills down many of our spines. However, let’s not get carried away

and condemn all business people at once. If you have picked up a

newspaper in the past weeks you would think our entire capitalist

system has crumbled because of a few unethical individuals. We need

to remember a few things before we form a collective lynch mob after

corporate America.

You will not read anywhere that the American business community

supports and voluntarily provides more than 130 million jobs and

health care to 177 million people. You will not read that American

businesses donate $20 billion to charities each year. Or that the

American business community contributes $150 billion annually to

clean up the environment.

The point is that business is extremely important to our everyday

lives and we cannot condemn the entire system or stop investing

because of a few individuals. There are approximately 17,000 public

companies in the United States and only a handful of them have been

accused of illegal or unethical behavior. As the old saying goes,

“Let’s not throw the baby out with the bathwater.”

The truth is that the business community is primarily responsible

for generating the nation’s $10.4-trillion gross domestic product, a

40% rise in the median income over the last decade, and a prosperity

level that has allowed two-thirds of Americans to own their own

homes.

America’s business community is extremely resilient and strong. It

is unfair to put all businesspeople in a bad light. Although

President Bush, Congress, the Securities & Exchange Commission, the

New York Stock Exchange, NASDAQ and the National Assn. of Securities

Dealers have all acted at record speed to improve our system with

reforms to strengthen accountability, the American public must take

responsibility for our economic well-being.

We must continue our confidence in the nation’s economic system.

The U.S. economy flexed its power after the Sept. 11 attacks and the

2001 recession, growing 6.1% in the first quarter of 2002. It is

projected to grow by 2.5% to 3.0% for the entire year.

Our economic foundation is strong. Consumer spending remains high.

Productivity is expanding. Inflation is low. Wages are growing. Job

creation is solid. New home sales are moving at record levels. We are

a strong nation with a strong economic future and we must continue to

invest in our economic foundation.

It is up to each and every businessperson to continue their

confidence in our economic system. Let’s not let a few unethical

executives or some negative headlines break our capitalist spirit

that built our great nation. Without the business community, America

would be a very bleak place to live. Instead of tearing down our

economic system, let’s unite and support it. We have a bright future,

and with everyone’s commitment to America’s businesses, it will

continue indefinitely.

* RICHARD LUERHS is president and chief executive of the Newport

Beach Chamber of Commerce