As of now, I am in control here, in the White House

Does Obama Understand Capitalism?

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.

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19 Responses to Does Obama Understand Capitalism?

    • They don’t teach “Redistribution of Wealth 101” in any business school and that is what MrO and his minions desire to happen. Of course, it’s not HIS wealth that he wishes to share with the poor, but yours and mine. That’s not the American way.
      His lack of any business knowlege is summed up in his back-handed support of Intel and their new enterprise; if Intel didn’t make a huge profit they wouldn’t have been able to build the new enterprise.
      MrO might want to investigate why FannieMae, FreddieMac and the USPO to find out why they’re losing money. Amtrak, too.

  1. This is about setting business up as the fall guys when the economy doesn’t improve and Obama’s election prospects are poor as a result.

    See I did everything to help the economy but those selfish business people refuse to do their fair share.

    • As the wife of a small business owner we know its coming. Sad since our small company gives jobs to almost 100 people and no doubt some of them will lose their jobs. Change it back please.

      • My family were small business people. Unlike Michelle O my mother had to work and this was in the 1950s. Owning a business is the most stressfull occupation. It’s not like being a government worker where you never have to worry about where your next customer is coming from. Everything should be done to ease the burden on the small businessman.

        Obama never even had a summer job except dishing ice cream one summer and yet he claims he never had money. That was always odd to me. Everyone I knew had to work from the time they were 16.
        My daughter even worked during Christmas vacations from college.
        It irks me that the Obamas always complain about how hard they had it. I never read about Michelle working either as a youth. Maybe she couldn’t get hired because the chip on her shoulder was too large.

  2. But it does remind me of what was said about Rupert Murdoch (if it’s true), who told his employees to vote for Obama because it would be good for business.
    Capitalism at its worst and best.

  3. What do you expect from a guy who said the following at the town hall meeting on Thursday?

    “Let me just first of all say that workers like you, for the federal, state, and local governments, are so important for our vital services. And it frustrates me sometimes when people talk about ‘government jobs’ as if somehow those are worth less than private sector jobs. I think there is nothing more important than working on behalf of the American people.”

  4. Keith…I have done a little reading up on the poor, downtrodden civil servant, callously been thrown out of her non essential National Zoo job in early June.

    Ok…going forward from ‘non-essential’ (and apparently her NOT grasping that term); she is also seven months pregnant (and would be off work in June–for at least a few weeks–for delivery). Does she qualify for Maternal Leave? Temporary Disability? And…by her own admission, she and her husband (I am assuming he is employed) are ‘building a house.’ Really? In DC?!? New construction in DC/NoVa doesn’t come cheap…so either they have deep pockets/great credit on their own; relatives who were helping by co-signing the construction note; or yet another HUD/Fannie/Freddie debacle ready to rear its head. How do you get a construction loan if you are not DEFINITELY approved for the mortgage???

    Does the Regime ever vet anyone or anything?

    This is like the woman in FL who wanted Obama to get her a new kitchen…

  5. Obama is way out of step with America. In his formative years he lived in Indonesia. In his youth he was in Hawaii hanging out at the beach. It was Goldilocks time for him. Take a look at Warren Buffet. He had a newspaper route in his youth. Obama never developed a work ethic.

    I think Obama and many in America do not understand what companies are all about. Companies provide goods and services. They are composed of the owners, the executives who run them, the workers, the vendors who supply goods and services to keep the business going and the customers who buy. If any of these get out of whack the business fails. (For example, past GM management being too generous to the labor unions….and the unions not willing to adjust).

    Yesterday the Senate grilled the oil company executives. Did they give a second thought about who owns these companies? Institutions, pension funds, 401 (k)s, mutual funds, you, your neighbors, your friends, co-workers own them. I am glad these companies make a profit. They return some of the profits to their owners. They, also, use some to expand. I had rather see the owners get the profits instead of government having it to waste.

    I heard a radio interview about a guy who knows Gov. Jindal of Louisiana. According to this guy when Obama visited during the oil spill Gov. Jindal asked that the drilling moratorium be lifted because so many people were losing jobs. Obama’s reply was let them go on unemployment. We are in sad shape if that story is true. I suppose we could ask a local cafe owner in Morgan City and see how many oil worker customers he has today….or how his food supplies are doing…or on and on.

    Re: THEY CAN HIRE MORE WORKERS..

    I suppose the Morgan City cafe owner will be hiring more employees so they can serve the oil worker customers who are not there??

  6. 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.

    He could have studied capitalism–you know, intellectually, when he got done with comparative religion classes. People hire when they need employees to make or do things in demand. This isn’t charity! If they can make people already working there do the things, they will.

    • By the way, the subscription price of the Wall Street Journal more than doubled. Just got the letter. Tell me there is no inflation. Oh, well, that will eliminate flak from dopes like me that use the paper everyday.

      I know–maybe after they fix up that person with The Bieb, he can jawbone Rupert. Of course, it would require imagining that not everyone who reads the WSJ is rich.

  7. Obama agenda is to overwhelm the system to bring down the United States of America. You dont believe it look it up and guy that went to school with him and advised that B.O. Listened intently to 2 of his professors on how to bring down America easy overwhelm the system. He hates Americans and Capitilism look it up Obamas Agenda overwelm the system to bring America down. Ring a bell anyone???? Scary scary stuff and he is our President. I believe this is called treason look it up. We should all be demanding this man step down and be charged for bringing down our Great Country which he and Michelle very much hate. Wake up America start writing and reading and contacting your Governor and anyone who will listen before it is to late. He believes in Russia and communism.