Barack Obama does lip service to the concept of entrepreneurship and small business ownership and, as he moves full tilt into election campaign mode, repeatedly cues up small business photo ops in an effort to become all things for all people. Like a shape-shifter from a sci-fi film, Obama’s primary skill is to appear to be something he is not, as he repeatedly masks his full-tilt assault on entrepreneurs and small businesses.
Consider the many, small business photo-ops that Team Obama has staged in the past few months, in New York, Ohio, Wisconsin, Georgia, Michigan, and Florida. At the same time, the regulatory costs and burdens of Obama’s policies have fallen heavily on the small business community, even as the net worth of Americans has plunged 40% in the past three years under the Obama Administration.
Barack Obama has, arguably, destroyed more wealth during his three years in office than almost any other individual in the history of the United States. And much of this destruction has occurred because Obama is anti-small business and anti-entrepreneurship. Much of this destruction of the economy has occurred because Barack Obama does not understand that business owners and risk takers are what grow an economy, and when the government creates an environment of instability, uncertainty, scapegoatism, topped off with draconian tax regulations, businesses and the economy suffer.
To Obama’s thinking, small business owners are considered part of the “rich”, and thus have become the whipping boy of the Obama Administration. The group labeled “rich”, earning $200,000 or more annually, whom Barack Obama believes need to be taxed at 40% or higher is mainly composed of small business owners, sole proprietors and entrepreneurs, who file their business taxes on Schedules and addenda to their personal income taxes.
Consider, too, that the group hardest hit by the mandates of Obamacare is the small business community which will be required to provide government-legislated healthcare options to employees, regardless of business size and profitability. The new rate hikes due to Obamacare may result in businesses facing a 9% increase in the cost of healthcare premiums. For many small businesses, 9% oftentimes represents the business' entire profit that year, so the Obamacare mandate could wipe out the fruits of an entire year's effort, or even worse, put a small business in the red.
The sad story goes on, as the group hardest hit by the reporting requirements of the Obama Administration policies is the small business community, where the SBA estimates that the cost of the various reports now required by the federal government cost approximately $10,000 to $20,000 dollars—often more than what the average small business makes in profit annually.
The proof that the small business community is the hardest hit by the Obama Administration’s anti-business policies is evidenced in several surveys that have been released this past month.
Small businesses are the biggest employer for minorities and teenagers. But, hiring by small business has slowed to the lowest point ever measured over a ten year period—which also helps to explain the disastrous unemployment numbers for minorities and teens. (The Administration has been trying to posit that teen hiring improved in May, but studies show that teens are discouraged and, thus, there are fewer teens in the market looking for jobs.)
Since small businesses are not hiring, they are also not borrowing as much—which affects the banking industry. Business lending to small business has slowed. Small loans to business of $1 million or less have been shrinking consistently since June 2008.
Average monthly pay for all small business employees decreased to $2,688 in May, a decrease of 13 percent.
The construction sector which has a large proportion of small businesses is, as a direct result of Obama’s anti-business assault is also in serious trouble. Construction sector revenue stopped growing at the beginning of 2006, began a slow decline in mid 2007, and then continued a more dramatic decline starting in mid-2008
“The most common source of startup capital for immigrant-owned businesses is personal or family savings, with roughly two-thirds of businesses reporting this source of startup capital”. But, the devastation within the economy over the past three years means that there’s a lot less “family savings” available for use as startup capital.
There’s an oft heard saying “small businesses need a hand up, not a hand out”, but in the Obama Administration, these kinds of assistance to small businesses are regarded, incorrectly, as one in the same.
The belief that one person can make a difference, can create a thing of value with no help from the government is antithetical to everything that Obama believes. Furthermore, the entrepreneurial ideology scares Obama because business owners act in direct opposition to the kind of government-doled out opportunities that Obama wants Americans to think is the best they can do.
The 2012 election is all about the government and its relationship to the American people and American business. That’s it. That’s all. Whether the issue under discussion is the economy, strengthening the capital markets, the bloated entitlement system, the military, American involvement overseas, Greek debt, healthcare legislation, attracting talented and educated workers, the tax code, or the risks and rewards of being an American, there’s just one degree of separation from these issues and the Obama Administration’s heavy-handed, regulatory overreaching into the lives of Americans.
Barack Obama’s policies cannot and will not work, because the Obama Administration does not truly believe that the economic success of America is intrinsically tied to the success of the American small business community.
And so, our shape-shifting president hopes to disguise his antipathy towards business, entrepreneurs and small business leaders, as he moves skillfully around the country in one staged photo-op after another. Each carefully orchestrated to mask the economic destruction caused by his policies.
Americans should watch how effortlessly Obama shifts his shapes, how effortlessly Obama dons whatever mask is calculated to disguise his intents and best serve his reelection efforts. Americans better say a prayer for the small businesses and entrepreneurs pitted against Barack Obama—a most formidable foe, capable of destroying vast amounts of wealth, ushering in even more restrict regulations, and killing off job creators.