Giving the Business the Business

After the 1994 election, two kinds of stories began to appear describing relations between the new Republican congressional majority and business groups. One kind depicted business leaders licking their chops, anticipating tax relief and relaxed regulation. As the GOP majority assumed power early in 1995, accounts in this vein told of business representatives moving at will within the corridors of power, brazenly rewriting statutes in their favor. The second type of article painted a different picture. It portrayed business leaders and lobbyists as anxious about the new political order created by the election. Business leaders voiced fears that Republican plans, especially those designed to reduce the deficit, cut taxes, and slash corporate subsidies, put the long-term health of the economy at risk. Concerns were also expressed, usually anonymously, over the political tactics employed by Republican leaders. Speaker Newt Gingrich, minority whip Tom DeLay, and others played hardball, bullying business representatives and demanding that they sever all ties to the Democrats.

Although the two kinds of stories seem at odds, both capture facets of how business has responded to the Republican triumph. The contrasts reflect the c...