Translation on Obama's Views About Business
Prop up all big crappy businesses (ie. Auto Industry & AIG) to protect middle class jobs that will crush all disruptive and innovative start-ups. Bigger businesses are better than free market innovation and smaller more volatile companies. Free market capitalism does not work so let the Government call all the shots about what businesses succeed.
Obama's business plan for the USA might as well have been written by a 5th grader. His vision is incredibly short term, thinking that roads, bridges and now runways (ooooh) will somehow create sustainable jobs? This is ridiculous since that was our business plan from the 1930's and has nothing do with wealth creation or capitalism. How does this help the United State create jobs and new companies that compete with China, Brazil and Russia in a global economy? It does not and has nothing to do with technology, education, healthcare or environmental innovation.
There is a huge disconnect and this is why IPO's, venture capital, start-up acquisitions are at its lowest lowest levels in decades. The Democratic National convention should be a rude awakening for all start-ups and investors. Put your money and checkbooks away if Obama gets elected because it will be a market of big businesses getting bigger. Protecting middle class jobs will be more important than letting start-ups innovate that create sustainable jobs and long lasting companies.
The problem is capitalism is happening 100x faster than ever before and many Democrats are too stupid to get out of the way. What would the auto industry look like today if we let GM go bankrupt? We might have fewer jobs but better & cheaper cars? Companies like Tesla might actually be an industry leader. Think about all the companies that wanted GM to fail? That's capitalism and preventing capitalism goes against the American ideals. Democrats call it a "zero sum" game. But no . . . the Government decided that GM is better.
Failure is good for business so they can be restructured. GM was a huge shareholder cram down without restructuring by a shareholder (aka Gov't) with unlimited money. Some call this a ponzi scheme because the cram down shareholder (Gov't) can print unlimited money and prop up the stock in the free market. GM has the same union problems and will ultimately fail soon as smaller companies slowly catch up to compete. Obama just delayed innovation by another decade. Slower change is better? F that.
This goes without mentioning that the capital cycle needed to start new companies is broken because of faulty taxation assumptions. Millionaires and billionaires (limited partners in VC, Private Equity and Hedge Funds) need to be incentivised more to invest more. Raising taxes on capital gains will kill the capital cycle flow back into companies drastically. Making the pie bigger is far better solution that redistributing money through higher taxes. Mediocrity will soon become a the middle name of the USA.
Our Government is too big and needs to be restructured as well.