U.S. BUSINESSES WAIT FOR GOVERNMENT'S MOVE

Prior to his trip abroad, President Clinton spoke to the National Federation of Independent Business, a group that has generally been unfriendly to his policies. While he scored well in sincerity and for his willingness to go into the lion's dean with his ideas, the president won few converts to his way of thinking and managing. Above all, the nation's business community and consumers are waiting to see the hand Washington will deal them. The economy is balanced precariously in anticipation of what will happen next.

A recent national newsletter aimed at commercial clients offered a mid-year assessment of the nation's business climate and one word sums up its appraisal: stagnation. Overall business is climbing, but not by much. Inflation is rising, but not by much. Interest rates and profits are expected on an upward course, but not by much. Workers are getting pay raises, but not much. And the primary factor in this dormancy is uncertainty about policies coming from Washington, especially tax increases, health-care proposals and new regulations advocated by the new administration.

Here is what good businesses do: They plan for the future. And businesses these days feel no confidence where planning is concerned, not when Congress might mandate on them additional taxes that will slam directly into their profits. Expansion and purchasing plans get backburner treatment because money to activate these plans might be destined for Washington, further stalling the business cycle. Companies are keeping their inventories thin and their hiring restrictive. Belt-tightening is still in vogue.

The demeanor is one of wait-and-see. With the nation emerging from an economic downturn, this is an attitude that could use a dose of enthusiasm. Instead, there is inaction.

A comment that emerged from the Independent Business convention was, "We're on ice until Washington sends us the new rule book." What a harsh indictment of national economic policy, that independent business, which only thrives if able to see into the future, finds its greatest stumbling block in the most supreme seat of government. Is this any way to run a country?