Recent pronouncements of President Obama and a three year trend of his administration have crystallized just where he stands on economics and job creation.
First, look at the three year history of his administration. The never-ending onslaught of regulation on business and banking under the guise of protecting the consumer and the environment have used a regulatory and lending blanket to smother the small business job generator. Small business has traditionally generated over 70% of the nation’s jobs. Now small business is both being smothered by regulation and a dearth of lending availability from the nation’s banks. The latter due to new banking regulations and Federal Reserve created opportunities to earn, outside of lending, by using the spread between borrowing from the Federal Reserve and then buying Treasuries.
The EPA is single handily ripping the life out of the coal industry, and its jobs. Oil drilling has been seriously curtailed on federal land and off shore, killing high paying jobs. Even fracking for natural gas and oil from shale is under attack by the EPA. Have you wondered why recent reports of EPA action indicate that the EPA has armed SWAT teams and why EPA agents now are armed? If this is true, what is next – armed truant officers and meter readers?
Now let’s look at two of the tenets of socialism. In socialism:
- the government controls big business and the banking industry
- jobs come from big business with small business being generally non-existent
President Obama has recently provided additional insight to what he believes to be job creation. His statement that the private sector is doing just fine was ludicrous but more so indicative of where he wants to take this country. His new plan is his old plan. He wants to create jobs by creating more non-federal government, but local government jobs, and we already know that federal jobs are up as well. CNN-Money reports: “…The number of federal employees grew by 123,000, or 6.2%, under President Obama, according to the White House’s Office of Management and Budget…”
To be fair and the article points this out that this is just a continuation of President Bush’s job growth in the federal government. I say, more of what is not good is bad. A word about President Bush – he expanded government, yes, and this was the start of our move to bigger government. This does not mean that it is good that President Obama doubled down on what was not a good trend in the first place. My mother would have said: “Two wrongs don’t make a right”.
The article also points out a greater number of regulations were introduced during the term of Bush than Obama. Don’t go by the number, but by the severity and impact. The Obama administration is masterful at private sector killing regulation and the regulations that place big business under the thumb of the federal government – Affordable Health Care is one and Dodd Frank is another. Each of these laws authorizes the bureaucrats of Obama’s administration to write extensive, binding, impactful regulations that destroy small business and gives the federal government unprecedented power over big business and the banks – key tenets of socialism.
Back to Mr. Obama’s pronouncements about creating jobs. Rather than unleash the private sector and small business to grow and truly create economically productive jobs, he is pushing for a repeat of the failed $800+ Billion stimulus which was going to create police, fire, and teaching jobs, as well as apparently non-existent shovel ready jobs, by doubling down and borrowing more money to pour into local government, government sector unions, and economically unproductive jobs. Remember the reason why police, fire, and teachers have been laid off is the inability of local government to pay the benefits and pensions resulting from these government sector union jobs. More socialism!
Apparently Mr. Obama is incapable of or has no desire to foster private sector jobs, even private sector union jobs, and he just has to feed the government sector unions with more stimuli. His solution to unemployment and the stagnant economic growth is to move into the only direction he knows and believes in; and that is to grow government, foster government sector unions, minimize or eliminate small business, have the banks do the bidding for the federal government, and ultimately raise taxes. His desired action requires more taxes and more taxes shrink economies.
I can only suggest that anyone who disagrees with me look up how failed socialist states operated. The plan Obama is using is the failed plan of the past, worldwide. There has not been one socialist economy in history that has improved and sustained the quality of life and standard of living of the populace. Government jobs, while a necessary pill which must be taken in great moderation, are not economically viable contributors to the Gross Domestic Product (GDP) and the standard of living of any economy – they require more taxes and again taxes shrink economies. Yet he steadfastly refuses to unleash the 70% job creator – small business.