Obama is Wrong About Entrepreneurship - Mises.org
Mises Daily by Chris Brown | Posted on 3/4/2009 12:00:00 AM
One of the most harmful of Barack Obama's public-private partnerships (PPPs) has to do with his support of entrepreneurship in an attempt to "spur job growth." I would like to show why this is not only a particularly bad idea but also a destructive one, leading to exactly the opposite of the result sought by the program.
Mr. Obama plans to create a business-incubator program to help more individuals start their own business. Obama's goal is the following:
Create a National Network of Public-Private Business Incubators: support entrepreneurship and spur job growth by creating a national network of public-private business incubators and investing $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country.
Business incubators aim to help entrepreneurs in the startup and early stages of growth by creating an infrastructure of resources for a company. This may include providing the company with an office, access to a network of mentors, help with regulatory requirements, and access to funding. It is important to note that in the United States over 70% of business incubators are funded by government or government-funded institutions (e.g., economic development organizations, universities), while only 4% are for profit.
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Obama is the enemy of Self-Determination
Small business owners represent a threat to Obama's collectivist ideologies because they are the type of people who strongly resist being "herded" and manipulated. They are the "natural enemy" of an all-powerful State.
Entrepreneurs and small business owners account for over 70% of the net new job creation in America. Yet, Barack's "stimulus package" provides less than One-TENTH of One Percent to SBA programs. As a small business owner, I can tell you factually that the private capital markets are gone- there is no credit available for small business, even among banks that accepted TARP funds and other forms of government money.
The bailout concept is bad at its root and should never have been applied at any level. But if government was hellbent on doing something to create jobs (which they're not), they would have lent some support to the people who have a long history of creating them.
Small business represents the antithesis of the collectivist idealogy. Obama's crew is quietly doing everything in their power to make us "go away". They don't want independent free-thinkers and doers- Just quiet and compliant serfs.
I don't think the problem is
I don't think the problem is that the government isn't "hellbent on doing something to create jobs".
The only way the government can get wealth for attempting to create jobs is by taking wealth away from those that could have created jobs...Think of how the government gets it's money...it either taxes us, inflates (they "magically" get wealth out of thin air, while our money is diminished in value), or borrow, which requires taxes or inflation to pay it back (with interest).
Any attempt by the government to create jobs is nothing more than the usual inefficient wealth redistribution they do all the time. If they take money from you to help some other business hire an extra person, your own purchasing power has gone down, while someone else's has increase, where as before that transfer it was the opposite. Now you probably will have to layoff an employee, because that money was given to another business to hire an employee...if you can afford to keep all your employees, then your total purchasing power has decreased, and therefore you will buy less, and a profits will lower elsewhere, causing a job to be lost.
Borrowing money to create jobs may increase the number of jobs in the short term, but then wealth must be taken away from the people to pay back the loan with interest, which will then lead to lower purchasing power among the people, which will support less jobs.
Government cannot create jobs.
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