CFO.com’s survey of CFOs reveals that some are getting beyond energy prices (which probably can’t be changed) and tax policy when it comes to what they would talk about with the next President of the United States:

Kurt Kuehn, CFO of UPS is concerned about “protectionist measures that might impede trade flows.” The incoming president “must realize that Fortress America won’t be competitive long-term.”

…”It’s really important that the consumer has the right amount of funds available for them to be able to live their life comfortably,” said John Richardson, the CFO Qwest Communications International.

These issues are near and dear to my heart. Kuehn seems to say that the idea of a free market must apply worldwide. I agree wholeheartedly but ALL nations must cooperate or it won’t work. Richardson’s quote doesn’t say it but leads me to believe that the credit industry has been poorly managed resulting in lack of money for good borrowers at low rates. I believe that the credit industry is out of control and we need to pass laws outlawing exorbitant rates and lending policies that do not consider a borrowers long-term ability to pay.

These improvements in free market and credit policy will help establish a stronger economic base for the long term. Do you agree? Do you think that tax policy is equally important?

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How does the price of oil and the war affect CEO confidence in the economy? CFO.com’s survey of CFOs reveals:

…the price of oil and war in the Middle East are weighing heaviest on the minds of senior financial executives. By a wide margin, they regard the cost of energy as the most serious roadblock to economic prosperity, with a whopping 62 percent of 135 finance chiefs expressing that view. The housing market slump and the federal budget deficit, both at 40 percent, and the descent in the value of the U.S. dollar, at 37 percent, trailed far behind.

This is very important because many oil industry experts believe that the price of oil will continue to rise. What if it does? Are we in a perpetual downturn? Of course not. People will change their habits and demand, more forcefully, alternative fuel and transportation development. Also, those alternatives will become economically feasible once the price of oil and related products increases to certain levels. Our attitudes about nuclear energy will probably change quite a bit in the next year or so.

I believe that we have to simply accept the price of oil and quit saying it has to fall in order for our economic conditions to improve. We will adjust, as we always have, and the economy will come roaring back.

How do you see it? If oil prices never fall, and continue to rise, can our economy improve?

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