Is Obama good for business?

Some of the names that might fill in the org chart in an Obama Administration are also telling. Obama — whose own father was a Kenyan economist with a PhD from Harvard University — has cultivated a group of economic advisers. They're generally careful technocrats, and are led by University of Chicago professor Austan Goolsbee. Among the others: Jeffrey Liebman and David Cutler of Harvard and Christina and David Romer of the University of California, Berkeley. Goolsbee has shown a preference for making economic initiatives easier to understand and use, an effort Obama calls "iPod government."

On the campaign trail, Obama and Goolsbee have crafted proposals to streamline government programs like the Medicare Part D prescription drug benefit, which Goolsbee feels is too complicated. Same with student loan applications and tax forms. Goolsbee says the distinction with Clinton is most evident in the candidates' plans to increase the personal savings rate. Obama would create an automatic 3% savings withholding from every paycheck that employees could opt out of if they want to. Clinton, on the other hand, proposes a targeted tax break to incentivize savings. The Clinton plan, says Goolsbee, "is what the playbook says to do. But the research says tax credits won't induce very many people to actually open savings accounts."

A good business partner?
Still, business has traditionally preferred Republicans in the White House. In its most recent Senate tally, the Chamber of Commerce gave likely GOP nominee McCain an 80% favorable rating, compared with Clinton at 67% and Obama at 55%. Even worse for the two main Democrats, the National Association of Manufacturers rated both a zero, while McCain garnered 100%.

Those grades haven't hurt Obama's fund-raising. As a candidate he has eschewed contributions from political action committees and federal lobbyists. Yet he's been able to rake in cash at a blistering pace of about $1 million per day from individual donors, largely over the Internet. That includes money from employees of old-line industries. According to the Center for Responsive Politics, top contributors to Obama in 2007 included donors from law firms, investment houses, and real estate companies. In total, the center's analysis shows that Clinton is somewhat more favored by business contributors than is Obama: Eighty-five percent of her donations came from donors affiliated with business, while only 80% of Obama's did.

Obama is not business' candidate, but he may yet prove to be business' partner.

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