The Expanding Role of Government

government expansion is widely perceived as a drain on the overall economy, absorbing capital and stifling growth. 

Around the world and across industries there is a widespread perception that government has and will continue to plan an expanding role in business and society.  In some instances, this expanded role stimulates demand, mitigates risk, and removes uncertainty and ambiguity; having a positive impact on the economy.  Indeed, a number of distributors have reported growth in their government-related business.

However, these examples are limited.  Because of the expanding payrolls and budgets that come along with it, government expansion is widely perceived as a drain on the overall economy, absorbing capital and stifling growth.  The areas that wholesale distributors will most likely feel the government's role are:

• Environmental and safety regulations
• Immigration and labor
• International and domestic trade
• Stimulus, taxes, and tax incentives

ACTION POINT:  Understand the growing role of government and it's impact on your business in the areas above.