ELDER PATRIOT – President Obama has now completed over 80 percent of his term in office. Blaming his predecessor George W. Bush for the nation’s economic condition no longer holds merit, if it ever did. At this point Obama owns our economy, our wars, and every other issue big and small.
The Associated Press is reporting that food banks have been experiencing a rise in demand for free groceries every year since Obama took office. This is clearly an ominous sign because there can only be two explanations. Either people no longer care to work and/or they no longer can find work. Neither reason is indicative of a healthy society.
Why is this so? What happened to the country of our ancestors where anyone with an idea and a willingness to work hard could build a successful business? How can the United States now be ranked twelfth in new business start-ups behind countries like Hungary?
New business start-ups are now at a thirty-year low. Worse, failures are at a thirty-year high so that since 2008, small business failures have outpaced business start-ups. Jim Clifton chairman and CEO of Gallup tells us that during that span of time – Obama’s entire presidency – we are minus 70,000 small businesses net.
The reason for this disastrous decline is government. Government on all levels – federal, state and local – have burdened businesses with stifling regulations, consumer liabilities, employment laws with attendant legal costs, rising minimum wage requirements, higher energy costs, increased taxes and fees, building codes and regulations that cause delays in opening and increase costs dramatically, among many, many other reasons.
That large corporations are subject to these same laws offers no relief for the small entrepreneur. The costs of compliance, when spread over 100’s of operating units gives the large players a distinct competitive advantage.
Likewise, the high taxes that are levied on successful small businessmen when coupled with the growing risk of failure have made the risk/reward of start-up unattractive to an ever-increasing number of entrepreneurs.
Lax enforcement of immigration law creates yet another barrier for entrepreneurs versed in employment law. Because many competitors hire illegal aliens, law-abiding entrepreneurs are forced to consider the financial disadvantage they’ll find themselves at by hiring U.S. citizens.
Preying on the economic ignorance of the majority of Americans, Obama universally points to the record level of the stock market as the most significant indicator of the economy’s strength. It’s not. Large corporations have historically been responsible for creating only 25% of America’s jobs. With foreign countries offering lower employment, occupancy and energy costs there is increased incentives for large corporations to out-source as many jobs as practicable to these other countries.
The results are higher corporate profits that result in higher stock valuations but come with the loss of jobs here in the United States.
Sadly there is no initiative to change things. The legislative initiatives passed by President Obama’s party have only exacerbated the situation by favoring large-cap corporations going so far as guaranteeing their survival at the cost of…the entrepreneur and other taxpayers.
The singular measure of an economy’s strength is its ability to provide jobs for the people. Not only does high employment spread the tax burden more evenly, it lessens the demand for welfare programs. Both create wealth that can then be recycled by the people back into the economy to continue its growth.
That Obama refuses to adapt to the failures of his economic policy can mean only one of two things; he’s stupid and stubborn (not likely,) or his agenda is consolidation and control of U.S. business to weaken U.S. sovereignty and move us closer the New World Order.
Jim Clifton made this abundantly clear:
Let me be very clear. America, Inc. is far more important to America’s security than our military. Because without the former prospering — and solvent — there is no latter. We have enormous military power only because of a growing economy that has, so far, made it possible for the government to pay its bills. When former Chairman of the Joint Chiefs of Staff, Adm. Mike Mullen, was asked in a Senate hearing on June 28, 2011, to name the biggest current threat to the security of the United States, he didn’t say al-Qaida. He didn’t say Iran’s nuclear capabilities. He answered, “I believe our debt is the greatest threat to our national security.”
We have seen Obama and know who he is. If we hope to restore the United States to that shining city on a hill our next president better be someone who is prepared to walk the walk in increasing our entrepreneurial base and defending the sovereignty of the United States.