An Open Letter to President Obama

Earlier this week, President Obama addressed the U.S. Chamber of Commerce.  During the speech he challenged business to open the coffers on the $2 Trillion in corporate treasuries and begin hiring people. "I want to encourage you to get in the game," he said.  Another Obamination.

Mr. President, business never left the game.  Businesses don't get to call a time out.  Business played a game rigged with changing rules, onerous requirements, increasing regulations, the challenges of mandated health care, a crumbling infrastructure, and a tax system that punishes the ambitious while it rewards lay-abouts.

The demand to hire people, so that "we can create a virtuous cycle" displays the profound economic ignorance of the Chief Executive.  Mr. Obama, put down Karl Marx and pick up Thomas Sowell's Basic Economics.  This book should be mandatory reading for everyone in government.  Maybe the Senate and House and the State Legislatures can assign that book for the May book club.  But certainly I ask too much, since these elected representatives seem to loath reading, proven by their inability to read most legislation.


Business will begin hiring (and some companies are already doing so) when it makes good economic sense.  Unlike the government, when a business hires someone that person actually has to do something, and that something must make a contribution to sales or production or distribution or maintenance.  While government can create multitudes of jobs where those hired do nothing, business cannot.  The first rule of business is to make a profit.  Without a profit, no one has a job.  Without those jobs, no payroll.  Without the payroll, no taxes.  


The people who create those businesses, the entrepreneurs, (not the bloated corporate empty suits) are risk takers and visionaries.  But they are not suicidal and delusional.  


If you are a business owner, congratulations.  You have survived the worst economic downturn we have seen in the last 80 years.  While happy days may not be here again, there are clear indications that the economy has turned the corner.  Corporate recruiters and staffing companies are becoming busier, a clear indicator that companies are at least dipping a toe into the employee pool.  Valet parking is up, suggesting that eating dinner somewhere other than In 'N' Out and CPK, is once again an option for an evening out.  


As to "get in the game", at the risk of being redundant...we never left.