The failure of President Obama and his advocates, including the mainstream media, to understand economics 101 is distressing to say the least. Whether it is intentional duplicity, guile, or dishonesty on his part, or just plain ignorance because he doesn’t understand – it is disconcerting and frightening that our President would be so irresponsible as to lead American’s astray from truth!
Recent attacks against free enterprise and private equity by Barack Obama and his apologists are the tip of the iceberg and reflect an underlying agenda that is alarming. Even so, let’s address the attacks with substance and truth. The attacks are seeking to vilify the free enterprise system, private equity investors, and specifically Mitt Romney because of his business success. Barack Obama wants to disparage those who have been successful in business and fails to realize that rising tides float all boats. It is the foundation for his class warfare argument! Truth is, if we do not have a successful free enterprise system, no one, and I mean no one benefits. If we disrupt the balance and supplant the free enterprise system with government, we all lose and the middle class will disappear - in fact, we will elevate the impoverished. It is in our free enterprise system, and it’s success, that we overcome poverty. Why else have we seen nations around the world, even socialistic and communistic nations, adopt free enterprise? Within this context, free enterprise and private equity are synonymous.
Private equity in its simplest form is the foundation of free enterprise and economic markets. Anyone who invests capital directly into a business with a hoped for economic return is engaged in some form or degree of private equity. Whether you are Mark Zuckerberg of Facebook, the owner of a small business selling jewelry out of your home, or a large private equity fund, you invest time and capital into building a business and making it successful – this is basis for the private equity markets. Interestingly, you may not even be aware that you are a private equity investor. If you have pension or retirement funds (IRA or 401k) and are invested in the debt or equity markets, you are participating in private equity investments in one form or another; if you have donated to a charity or not-for-profit you may be, tangentially, a private equity investor; it is only a matter of degree. Private equity investors are individuals, pension funds, charitable funds, educational foundations, governments, corporations, etc., each of whom provide capital to build and sustain free enterprise markets and businesses. That said, no one invests their money with an expectation to fail, only to succeed; and success comes with sustainability and a return of capital and then some. The role of government is not to constrain these markets, but to encourage and expand them. For in such we see the ‘private equity multiplier effect.’ The ‘private equity multiplier effect’ is most easily seen in job creation, wealth creation and innovation.
Mitt Romney’s self-made business successes have come under attack from President Obama. We read that his success has created personal wealth estimated at $350+ million. What isn’t discussed are the billions of dollars of wealth created for so many others. What Mitt Romney garnered in wealth from his business success is nominal compared to what he has created for so many others, including pension fund and retirement accounts for many Americans, charities, employers, employees, individual investors and shareholders, and businesses. If one understands the multiplier effect of wealth creation, this means that in his career, Mitt Romney has had a profound and extended impact in the lives of innumerable Americans – far beyond the 100,000 jobs created in and as a result of his work.
The President of the United States has available to him the full resource of the United States. He has access to the brightest and most capable economic minds on the planet, and yet he doesn’t understand basic economics? He doesn’t understand the private equity multiplier effect? Or, he does and deliberately seeks to misinform the public? Either way, it is irresponsible and/or dishonest! The President of the United States is held to a higher standard. As a people we entrust him with the burden of care and stewardship to lead with integrity. We trust him to put country above self, and not subordinate American’s to ignorance, deception and deceit for personal power or position. He has a sacred trust and stewardship to lead with integrity and truth. This is a standard that all who have been elected to public office must abide. Even so, many don’t, and neither is this President.
It has been said that the fear of losing the office of POTUS is greater than the want to secure it; and it is becoming more and more apparent that Barack Obama, and those who advocate for him, are willing to abandon truth and integrity in an effort to preserve power and position. Their want for power and position, and willingness to do whatever it takes to preserve it, is frightening given the agenda they hold to neuter and undermine America’s divine exceptionalism and freedoms.
Fundamental to America’s economic strength, and consequentially our freedom, is our adoption of free enterprise and “free markets”. Free enterprise embodies the principles espoused in our Nation’s founding documents, wherein we are empowered with the agency to choose and act, within the bounds of nature’s law. In free enterprise, we act on principles embodied in such and granted by “nature’s God”, the unalienable rights to life, liberty and the pursuit of happiness.
Barack Obama should be ashamed!
“When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.” Declaration of Independence
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.