The State of the States

A guest blog by Seth Barnett, PPAI Government Relations Manager

Last month, PPAI’s government relations manager Seth Barnett traveled to Minneapolis for the annual State Legislative Summit produced by the National Coalition of State Legislators. This event brings in more than 2,000 state legislators, their staffs, trade groups and nonprofits from across the country and all over the world to discuss ways to improve politics for the citizens of each state. This was PPAI’s first time to participate in the event. With the continuation of PPAI’s growth on the state political scene, the legislative summit was the obvious next step for industry government relations efforts.

Of the many subjects that were part of the conversation at the summit, a few stood out as potential benefits for the promotional products industry. These included an overview of small-business health within the states, the status of state economies and an interesting look at the views of American politics held by voters.

Small-Business Health

We work in a fickle and sometimes unstable economy. It is good to understand how our state governments perceive business within our states. Sometimes we overlook the role that state government plays in the workplace. While the federal government has come to numerous standstills over the past several years, the states are continuing to look at what makes their respective economies successful.

Of the small businesses in the U.S., more than 90 percent operate with fewer than five employees and generate less than $5 million in annual revenue. That is significant when considering how much small businesses contribute to the GDP. It is also good to know how our industry, with its 97 percent small-business operation, compares to other industries.

Most state legislators can agree that they want to encourage entrepreneurship and small-business development. In fact, most cities across the country have seen increases in entrepreneurs in the current economy. There has also been a sharp increase in the number of people transitioning from being regularly employed by someone else to becoming independent and creating an S-Corporation, C-Corporation or sole proprietorship. This can be seen as the result of state and local governments efforts to promote the entrepreneurial spirit among residents.

The states have also gone to great lengths to identify what small-business success looks like. Essentially, of the states with the most successful small businesses, less state tax on business reflects better business operation and less government involvement, but more competition regulation keeps the market moving and simplistic tax regulation makes it easier for small businesses and independents to stay profitable.

The states can all agree on one truth, which is that small business is the engine that drives state economies. Still, small businesses face uncertainty and challenges that often stem from poor and misguided legislation at the state level. The unique opportunity here is that state legislatures need input from the business community to be able to create and pass effective legislation.

State legislatures continue to want to hear from constituents about what they can do to better serve businesses. PPAI has a tool specifically designed to help industry professionals to look up their state legislators contact information. Follow the link below to find your state representatives and tell them what you do in the promotional products industry and how they make you more successful.

Who Represents Me?

State of the States

State politics have continued to stay slightly more effective than the federal government in the creation and passage of solid legislation. State politicians are proud of the job most of their colleagues across state lines are doing for constituents. The states are working independently of the federal government to bring back trust in the government after the recession.

Some states are doing a better job of recovering from the recession than others, but all have essentially experienced a return to theirpre-2008 economic status. The majority of states have worked to reestablish their economic bases that will defend against future recession. Many states have created plans to provide more constituent services specifically those which promote business within the state. This includes training programs through government agencies, job readiness programs, business planning programs, and so on.

Politics: What Do Americans Really Think?

The view of American politics by the American public has not been this negative in many decades. Americans as a whole are unimpressed with the direction of government, and while state governments look better in the eyes of the public, they are still not completely immune to negative feedback.

We are currently experiencing the longest period of pessimism regarding the federal government than any other time in history. A mere 14 percent of Americans approve of the job that Congress is doing and only 19 percent approve of the American political landscape as a whole.

The economy continues to remain the centerpiece of American politics at all levels. Nearly half of all voters believe the economy is the number one contributing factor to government uncertainty. While economists believe that the economy is in an upward swing, the American public remains cautious. It is important to understand the place we each have as part of the political system. Government cannot work without us. PPAI encourages industry leaders to take action to maintain stability of the industry in front of both federal and state governments. PPAI will continue its government relations push on state and local levels. To learn more about all of PPAI’s political efforts visit www.ppailaw.org.

 

 

 

 

2 responses to “The State of the States

  1. Thanks for the post, Seth! Sometimes we get so focused on what’s happening in our own offices that we forget to check in on the macro-economic things going on in the world.

    Has the promotional product business historically performed better in one political environment versus another?

    I would highly recommend reading the WSJ everyday. I’ve done this for years and people often react to me as if I’m a fountain of knowledge even though I invest only 20-30 reading it each day. No matter what you read we need to stay informed!

  2. So nice to see such a wonderful post about great promotional productsand how they can help non-profits. I’ve just recently started selling promo products & the whole reason I got into the field is to help these amazing non-profits

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