The national unemployment rate's hitting 10.2 percent may have come as a great surprise to “the messiah,” aka President Barack Obama, but it came as no surprise to anyone who understands economics.
My old college classmate Obama is not among that group.
Small business creates upwards of 75 percent to 80 percent of all new jobs. If small business is failing, there are no new jobs. Without a robust small business community, there can be no economic recovery.
All the stimulus money in the world going to Obama's big business campaign contributors — unions, government employees, banks, Wall Street — will not end the recession. All the government jobs “saved” and created will do nothing except take money and jobs AWAY from the private sector. All the billions of dollars lavished on unions and union workers will push the country back into recession. All the government union workers Obama honors with raises will increase the national debt and damage the economic recovery. Only a recovery led by small business can save us. We are staring at an economic Armageddon — not just for us but also for our children and grandchildren.
We have been lied to — by Obama, by House Speaker Nancy Pelosi, by Treasury Secretary Timothy Geithner, by Fed Chief Ben Bernanke. There is no recovery. The recession isn't over. To the contrary, we are in the start of a long-term depression caused by big government, big spending, onerous taxes, and government regulations placed on business, too much deficit, and debt.
Obama isn't the solution. He is the problem. He knows nothing about business — small or large. He never has owned a business, run a business, funded a business, or created a job in his life. His entire knowledge of economics comes from books. And they are the wrong books — Karl Marx never created a job either.
I didn't need today's bad news on unemployment to know we were coming out of the recession. I only needed to open my eyes and see the real tragedy right in front of me on Main Street:
The salon where I've had my hair cut for eight years — a bustling, loud, prosperous small business in Las Vegas (before Obama) — went out of business last month. Closed with no notice, and sheriff's deputies padlocked the doors. The healthy fast-food restaurant where I ate organic hamburgers, organic milkshakes, and baked fries for years — also a bustling, prosperous business (before Obama) — went out of business last month. Not just one small business, but rather the entire chain of five restaurants in Nevada and Florida gone. My biggest competitor in the sports handicapping industry, a legend in our industry, after 30 years in business, closed up shop two weeks ago. There went 30 years of prosperity, hundreds of millions in revenues pumped into the economy, and 100 good-paying jobs down the drain. All it took was nine months of Obama's running the economy. U.S. Air — the second-largest airline carrier into Las Vegas — recently announced it was cutting half of its routes. Does that sound like the end of a recession? One of my neighbors — a well-known celebrity, CEO, and multimillionaire — has put his multimillion-dollar Vegas mansion up for “short sale” to stave off foreclosure. One of my best friends has closed or sold off eight of his 12 vitamin stores to try to “stop the bleeding” of business losses. He reports that the past four months have been the worst of his 25 years in business. “Business has literally dropped off a cliff,” he says, adding, “Anyone that says we are in recovery is either a fool or a liar.”
Small business is in freefall. Not only will there be no new jobs but also we will continue losing jobs until Obama finds a way to save small business. Unemployment will only go up from here. Saving or creating government jobs won't save the American economy — as we now see. Obama's theories don't work in the real world. They work only in books — books written by Karl Marx. The Obama experiment is a massive failure.
But the reality is Obama has a much bigger problem on his hands. Small business doesn't just create all the jobs, it also pays virtually all the taxes. That means there will be no tax revenues to pay for Obama's massive spending programs, entitlements, and stimulus. That means all of Obama's deficit forecasts are way off. Since Obama projects almost $10 trillion in deficits over the next decade, my educated guess is we should count on a figure closer to $15 trillion to $20 trillion in deficit. We are in a world of trouble under the leadership of a man who thinks government creates jobs. Good luck with that.
Having said all of that, just criticizing isn't good enough. Critics need to provide solutions. In my next commentary, I'll show a simple two-step program (direct from the pages of my new book) to save small business and turn this entire economy around quickly. Obama, are you listening?
Wayne Allyn Root was the 2008 Libertarian vice-presidential candidate. His new book is entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” For more of Root's, commentaries, or to watch his many national media appearances, visit ROOTforAmerica.com.
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