The socialist in chief has spoken. Now I know that is somewhat of a cheap shot, but really, what was the president talking about with the speech he made last Friday? I’ve come to no other logical conclusion that President Barack Obama believes in socialistic ideals.
President Obama spoke on Friday July 13th in Roanoke Virginia in front of historic fire station #1.
Once again it’s obvious with the speech he was pandering to his base. If you want a quick summary of this speech and his presidency, it can be summed up into this one quote.
President Obama, that statement is an outright insult to any small business owner, and I’m offended by that comment. President Obama you have absolutely no clue what it takes to start, and run, a business.
Based upon statements like this, isn’t it obvious why we have the lowest recorded amount of new small businesses created? Small businesses comprise approximately 70% of the US economy. Until they grow (along with housing), no recovery will ever happen. Adding new complex laws (cough, Obamacare) is certainly not helping the situation.
I honestly cannot understand why any small business owner would want to vote for President Obama in the 2012 election. If you are a small business owner and are going to vote for him this election, please make a comment below. Tell me why you would vote for him. What policies will help you as a small business owner?
The speech is typical for Obama and makes numerous references in taxing the rich. Here’s his full 42 minute speech from that event. I’ve included his whole speech, so you didn’t think what I took is out of context. The part of his speech that gets real interesting starts at 33:33.
There are a lot of wealthy, successful Americans who agree with me – because they want to give something back. They know they didn’t – look, if you’ve been successful, you didn’t get there on your own. You didn’t get there on your own. I’m always struck by people who think, well, it must be because I was just so smart. There are a lot of smart people out there. It must be because I worked harder than everybody else. Let me tell you something – there are a whole bunch of hardworking people out there.
If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business — you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.
The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together. There are some things, just like fighting fires, we don’t do on our own. I mean, imagine if everybody had their own fire service. That would be a hard way to organize fighting fires.
The president’s statement makes it obvious he never worked in the private sector. There are so many issues with the statement he made, but I’ll only focus on the small business comment.
The points he makes are typical straw man arguments and are in line with the Elizabeth Warren’s argument.
Yes, Mr. President, we understand no man is an island. We also need a stable government and rule of law to ensure the goal line isn’t constantly changing. Without question, we need others when creating a business. I have customers, employees, vendors, consultants that all help me get to where I’m going. Individually we all want something, which causes us to act in our best self interest.
BUT, and this is a big one, they all did it voluntarily. It wasn’t via the force of a gun, unlike our government can yield.
There was a mutual agreement in which I gave something (service, salary, etc.), and they got something in return of equal or greater value to them. Otherwise my business will cease to exist! If I offer a product or service of poor value I wouldn’t be in business too long. If I purposely ripped people off, word would quickly get out.
Keep in mind Mr President, the risk is 100% mine, but the reward is not. Let’s talk about the risk side first.
Who Takes The Risks?
I was the one who took the risk. I was the one who took my own money and invested it. I was the one who determined what business to enter and to work 60+ hour work weeks. I was the one who quit my job from a very successful pre-IPO company to start a new company.
I was the one who decided to sacrifice other things, including time with loved ones, to work instead. YOU, the government, and others did NONE of this. If anything, the government increased my risk for failure.
President Obama (and Elizabeth Warren for that matter) obviously believe people are to serve the government, which is completely bass ackwards. The government solely exists FOR the people. It’s obvious he does not think this way based upon the statements he makes. Tax revenues are not “lost” if taxes are decreased. If taxes are increased they pretty much have to come from productive individuals and given to the government to spend. If they aren’t productive, then there’s no taxes to collect right?
Not that I’m against taxes, mind you, but to put it simply, taxes take money out of the private sector. So instead of individuals determining the best use of their hard earned money, it’s given to the government to spend instead. Who do you think is more efficient in spending money? If unsure, see Milton Friedman.
Who Is Rewarded?
Now let’s talk about the rewards. Forget about the increase in taxes if my business is successful. I won’t even discuss this argument because it’s been done ad-nauseum. Let me just say, with taxes the government becomes your “silent business partner”. They reap all of the rewards, yet take on no risk.
Let’s instead talk about the reward society gets because of my business. I get to create a product or service which helps others solve their problems. By being in business I’m in effect helping society become a better place. If my business didn’t exist, it’s possible an important niche wasn’t being fulfilled. So, therefore, just by being in business I am helping society. This doesn’t even include the vendors I enrich by using their services, and the people I pay by employing them.
Who’s Fault Is It When A Business Fails?
So if I understand President Obama’s pretel logic, if my business fails, then it must be the fault of others, right? After all I didn’t create it.. This then explains why he constantly blames others for the failures in his administration. It isn’t his fault the economy is still bad – it was Bush’s fault. The Solyndra debacle was because of cheap Chinese solar panels – not anything to do a failed business model or energy policy. The high unemployment even after stimulus – the stimulus should have been bigger, and jobs weren’t shovel ready.
Maybe I’m being too hard on the President’s statements and should see his movie “The Obama Effect“. Unfortunately, it’s not playing anywhere near where I live. Though like this administration, the movie is a work of fiction.
Update: Some have suggested this was a gaffe. From Obama’s “truth team” (you cannot make this stuff up), he was referring to the roads and bridges with this comment, not businesses. Though if you watch the video, it appears the context is about the business. Also the correct grammar to refer to “roads and bridges” is ‘those’, not the singlar ‘that’.
Even if the reference were true, businesses DO help build the roads and bridges via the taxes they pay. So even in that context the statement is still false. Let me add, the DOD created ARPNET (the first version of the Internet) for the purpose of military communication and was NOT for commercial use.