The Business of America

Calvin Coolidge is one of the least quoted America presidents because he was usually reluctant to say much of anything. But one thing he did say has stuck with us. “The Business of America,” said Calvin Coolidge, “is business.” His declaration epitomizes an influential school of thought which claims that business is and should be the dominant American institution. Some have proposed, in fact, that the United States government should be run like a business.

The notion that leadership in all sorts of organizations and enterprises should mimic the behavior of business leadership is rooted in the history of business itself. About 160 years ago, when large-scale formal organizations first began to appear all over the landscape, business organizations had one definite advantage over democratic governments and other multi-purpose organizations. The clear and constant discipline of the bottom line, which separates profit from loss, gave business leaders a target and a method to measure all aspects of performance. The development of management as an academic subject made its initial gains in the world of business. Nowadays management principles are taught to leaders and would-be leaders in education, religion, government, medicine, and dozens of other fields.

In times of economic recession, the pressures of budgets make the application of business methods even more logical. Ironically, the success of business management principles, the affluence produced by American business, and concern for certain side effects like environmental pollution, have given rise in some quarters to a shift in emphasis from production to service and from preoccupation with the bottom line to social responsibility. One of the most promising developments in the realm of organizations, including businesses, is the focus on the "triple bottom line:" people, profits and the planet. If Calvin Coolidge were around today, he might be tempted to revise his most famous remark. “The business of America”, he might say, “is America.”