A number of business owners have let me know of their new annoyance. They’re taking umbrage. The Great and Powerful Ozbama has chosen a new demon: the small business community. Not long ago, the rhetoric was about the need to assist small business. Now it is about hanging his unemployment crisis around small business’ necks.
The problem, Obama suggested in a speech this past week, is that small business is not hiring enough, and squeezing its too-few workers to do more. How dare they? Small business owners should hire even if not making profits. And, he apparently reasons, greedy owners must be taking excess profits instead of hiring. Otherwise, gee, there’d be more jobs.
Since neither Oz nor many of the socialists around him has business experience, I offer this week’s column as an educational gift to them. It’s just two lessons called Business 101, based on one of my 13 books, “No B.S. Guide to Ruthless Management of People and Profits.”
Lesson #1: The purpose of business ownership is not to be a provider of jobs. The purpose is maximum profit. Anything or anyone interfering with achieving that mandate must be ruthlessly dealt with. Or economic reality will ruthlessly deal with you.
This piece of information might come in handy, now that – with zero relevant experience – Obama is managing quite a few businesses we all own: Government Motors, a welfare program for 35,000 UAW members masquerading as a car company; AIG; and assorted zombie banks too big to be buried.
Dear President Oz, your no. 1 task is to make these entities make profits. And if they can’t, hand them over to bankruptcy court. With ruthless decisiveness. Take out the garbage before it infects the entire place with toxic mold and fumes.
No business or business owner has any obligation to create jobs or to provide jobs, unless doing so produces more profit than could be made otherwise. Each person employed must be worth a multiple of their cost, or they must go. And the fact that productivity and unemployment are both up tells you that there have been plenty of businesses tolerating unnecessary, unprofitable employees, and companies are discovering far and wide that supervision has gotten sloppy.
Losing Jobs Over Ex-Im’s Expiration? Don’t Believe ItLosing Jobs Over Ex-Im’s Expiration? Don’t Believe It | Ed Feulner