Luncheon discusses state of post-election economy: Speakers express optimism regarding state of the nation

With President Barack Obama winning re-election earlier this month, many Texas business professionals are curious how that victory will impact their companies.

At the Frisco Chamber of Commerce's "state of the economy post-election" luncheon Nov. 15, the topic was addressed head-on by two guest speakers, John Ansbach, the general counsel for General Datatech, and Eddie Reeves, the founder and principal of Reeves Strategy Group.

According to both men, the economy is on an upswing following a recession during most of the past four years. Both also expressed optimism for where the economy is headed.

Ansbach, who was named Best Corporate Counsel in Dallas for 2010 by the Dallas Business Journal, said the economy should be looked at optimistically by businesses.

"Current unemployment rate in this country is 7.9 percent. That's not good, but it is the lowest it's been in three years. Texas is at 6.8 percent -- a full one point below the national average," he said. "Existing home sales are also up 11 percent over the last year, and housing is doing well. It's not going great, but it's certainly better than it was -- and that's a good economic indicator."

One area that Ansbach said will have a positive impact on the U.S. economy for years to come is the energy industry.

That industry, he said, will continue to help the United States rebound from the recession. Many energy technology companies have expanded in recent years in relatively new fields, such as wind energy and other forms of green energy.

"I feel confident we're on an energy upswing we have not seen in a long time," he said. "My friends in the energy business tell me this is not a normal thing."

Reeves agreed with Ansbach's statements regarding the economy and added that it will continue to grow in coming months and years.

"The economy in general is in recovery," Reeves said. "There's no serious economic observer who denies that. It's not a rapid recovery, but it's not a glacier-paced recovery, either. It's picking up steam -- particularly in the last three months."

In addition to his optimism for the overall economy, Reeves expressed optimism about the impending "fiscal cliff" that's been widely discussed in the media.

While Reeves said going over the proverbial cliff -- which would be made up of spending cuts that were approved in last-minute negotiations two years ago and the nonrenewal of the Bush-era tax cuts -- would be bad, it's not going to happen.

"I think the broad outlines of a deal are probably pretty close to being in place," he said. "You'll probably see a preliminary deal pretty soon. I think you'll see the extension of the Bush tax cuts for everyone earning under $250,000. I think you'll see the lowering of some corporate tax rates, and I think we'll see the closing of some [tax] loopholes."

Despite the optimism in the U.S. economy from Ansbach and Reeves, both men said a clear threat looms in China.

China, which is the second-largest economy in the world behind the United States, has been rapidly growing in recent decades and threatens the international marketplace, Ansbach said. One of the threats associated with that country's economy is how it's operating under a system that favors Chinese companies.

"They have some major dynamics at play right now," he said. "Their problem is they have some massive corruption in their government. As long as they remain closed and we don't have good access to their markets, it's going to be a mess. And when I say access to their markets, I mean we need to have the same access to their markets as they do to theirs."

Reeves was more blunt regarding the matter, saying China "cheats" in the business world and needs to be held accountable for its actions in the international marketplace.

While some issues currently exist in the U.S. economy, Reeves said audience members made an important step in being heard at the state-level by being involved in the Frisco Chamber of Commerce.

"One of the most important thing I think local business people can do is get involved with organizations like the Frisco Chamber," he said. "It carries a lot of weight in Austin. The good news, I think, for a lot of the people who disagree with the thrust of the administration, is it doesn't have a great bearing on daily life in Texas. The majority of the things that affect your life here today are decided at the state level and the local level."

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