President Obama said this week during his “Town Hall” on CBS that he is telling CEOs to start hiring.
Which leads to the obvious question: Does he have a five year plan for them to do it?
I had thought that only someone sitting on a Politburo somewhere thought they could order companies to change their business practices, to do something because it is “fair” – in the leader’s mind – even if IT IS A REALLY BAD IDEA.
It’s this type of thinking that led to the famous business success story known as the Soviet Union.
Now don’t get carried away. I’m not saying Obama is a Communist. I’m just saying the economy is being run by someone who doesn’t seem to grasp the fundamentals of market economics, and whose view is aligned with a command and control economy mindset.
Here’s what Obama said when asked about whether businesses should start hiring now that they have some cash around.
When I talk to CEOs — the issue here is not uncertainty. The issue is they’ve got to start placing their bets on America. It is time for companies to step up. When we’re in the middle of a recession, our whole job was to make sure the — the economy was still growing and we stabilized the financial system. And we did that. And American taxpayers contributed to that process of stabilizing the economy.
Companies have benefited from that, and they’re making a lot of money. And now’s the time for them to start betting on American workers and American products. And we’ve got some companies that are doing that. I — I was up at Intel — the microchip manufacturer up in Oregon — and they’ve just built a new multibillion dollar plant. And they are hiring — hundreds of new — or American workers to work at this new plant. And there are a lot of companies who are doing the right thing. Making investments here.
So, the idea here is that since American taxpayers helped businesses out during the recession, it’s time for businesses to pay back the favor.
And they should do “the right thing” BECAUSE OBAMA SAID SO. Because he is reminding them of what they “owe” taxpayers.
Gosh, I think it was in econ 101 where I learned that “the right thing” for businesses to do is exactly what they think will make them money.
The supply and demand curve you learn about the first week of microeconomics, for example tells you that the greater the demand, the MORE you charge. Obamanomics 101 would probably turn the demand curve upside down with a rule that says, “Hey, demand is high, so do ‘the right thing’ and charge a little less since you’re making all that money.”
We’re not talking about corporate responsibility here. I think corporations should be encouraged to do charitable work. But that’s very different from being told to run their business as a charity.
If companies have extra cash lying around, they must use it for the wisest purposes, so their businesses will grow. So that, when the time is right, THEY CAN HIRE PEOPLE.
Like, maybe, for example, they want to see Obama’s new health care regulations before deciding whether to bring on new employees. Or the financial reform bill regulations.
They need to understand Obama’s earlier demands before they can respond to his new demand.
Then he can decide whether they’re being good comrades or not.