The Great Destroyer: Barack Obama's War on the Republic (29 page)
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Authors: David Limbaugh
BOOK: The Great Destroyer: Barack Obama's War on the Republic
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Perhaps the most troubling aspect of the Solyndra affair—more troubling than the cronyism, the self-deluding economic analyses, the high-pressure rush to approve the loan guaranty, and the last-ditch restructuring attempt that cost the taxpayers tens of millions—is the administration’s dogmatic refusal to re-think its approach in light of the company’s collapse. If something that wasteful and that politically embarrassing cannot force some introspection, then in all likelihood nothing can—meaning we can expect to see a lot more Solyndras in the near future.
CHAPTER NINE
THE WAR ON BUSINESS
D
espite claiming to be a “fierce advocate of the free market,” Obama has consistently revealed his contempt for free enterprise and the private sector. He has compiled the most anti-business record of any modern president, vilifying the “wealthy” and the profit motive, while promoting major tax increases on small businesses, dividends, and capital gains. He has opposed, until this election year, corporate income tax reductions, and has burdened businesses with stifling regulations. He has also betrayed an alarming ignorance of basic economics, cajoling businesses to step up and hire more people, as if their hiring decisions are purely a matter of personal whim and their failure to create jobs stems from just plain selfishness.
1
espite claiming to be a “fierce advocate of the free market,” Obama has consistently revealed his contempt for free enterprise and the private sector. He has compiled the most anti-business record of any modern president, vilifying the “wealthy” and the profit motive, while promoting major tax increases on small businesses, dividends, and capital gains. He has opposed, until this election year, corporate income tax reductions, and has burdened businesses with stifling regulations. He has also betrayed an alarming ignorance of basic economics, cajoling businesses to step up and hire more people, as if their hiring decisions are purely a matter of personal whim and their failure to create jobs stems from just plain selfishness.
1
Business doesn’t seem to get much of a hearing in the deliberations of the Obama administration. This is unsurprising, considering most of Obama’s appointments are academics who lack business experience. In describing Obama’s original cabinet,
Politico
wrote, “This constellation of talent … has something of a black hole. There is virtually no one on Obama’s team with outsized achievements or a high-profile reputation earned in the world of business. There are no former CEOs in the Obama Cabinet. And among the people who make up his daily inner circle, there is only a dollop or two of top-level private sector experience.”
2
Politico
wrote, “This constellation of talent … has something of a black hole. There is virtually no one on Obama’s team with outsized achievements or a high-profile reputation earned in the world of business. There are no former CEOs in the Obama Cabinet. And among the people who make up his daily inner circle, there is only a dollop or two of top-level private sector experience.”
2
Even as it says it has streamlined and softened the regulatory climate, the administration has accelerated the pace and scope of regulations across the board, both with existing laws and with major new ones such as ObamaCare and the Dodd-Frank financial regulation bill, which both create new regulatory labyrinths. Meanwhile, in its zeal to
appear
to be on the cutting edge of ethical rule-making—as opposed to actually operating ethically—the administration has proposed new ethics rules that are either irrelevant or actually harmful, such as a rule that would ban government employees from attending conferences and trade shows.
3
appear
to be on the cutting edge of ethical rule-making—as opposed to actually operating ethically—the administration has proposed new ethics rules that are either irrelevant or actually harmful, such as a rule that would ban government employees from attending conferences and trade shows.
3
While exuding hostility to business, Obama is beholden to Big Labor, which provides the financing and on-the-ground muscle for his political campaigns. In return, Obama consistently advances Big Labor’s interests, most notably in protecting the unions above all others during the government takeover of GM and Chrysler, as described in
Crimes Against Liberty
.
Crimes Against Liberty
.
Obama’s favoritism toward labor unions typically comes at the expense of employers and non-union workers, such as his support for card-check legislation that would eliminate secret ballot voting on whether to form a union. Other examples include the countless pro-union actions of his NLRB, such as its rule requiring employers to place posters at the workplace informing employees of their right to organize;
4
its rules making it much more difficult for employees to rid themselves of unwanted unions through decertification;
5
and its legal actions against states that have opted for secret ballots instead of card check for unionization.
6
4
its rules making it much more difficult for employees to rid themselves of unwanted unions through decertification;
5
and its legal actions against states that have opted for secret ballots instead of card check for unionization.
6
Obama’s NLRB also abandoned its longstanding precedent and adopted a new rule making it much easier for unionists to organize by allowing small groups of workers to form micro-unions when a majority of all employees wouldn’t support unionizing.
7
Further, the NLRB approved the unions’ ability to negotiate pre-recognition agreements in exchange for card check, thereby undermining the employees’ rights through these “sweetheart deals”;
8
and, as discussed later, it sued Boeing to prevent it from opening a plant in a right-to-work state.
9
In one telling maneuver, the administration, despite its stated commitment to increasing exports and bolstering free trade, delayed for three years sending to Congress trade agreements with South Korea, Panama, and Colombia—agreements Big Labor just happened to oppose.
7
Further, the NLRB approved the unions’ ability to negotiate pre-recognition agreements in exchange for card check, thereby undermining the employees’ rights through these “sweetheart deals”;
8
and, as discussed later, it sued Boeing to prevent it from opening a plant in a right-to-work state.
9
In one telling maneuver, the administration, despite its stated commitment to increasing exports and bolstering free trade, delayed for three years sending to Congress trade agreements with South Korea, Panama, and Colombia—agreements Big Labor just happened to oppose.
The White House is aware of the widespread perception that it is anti-business, which is why in the summer of 2010, Obama launched a PR offensive with major corporations. Although Treasury Secretary Tim Geithner was all over the talk shows touting the administration’s “pro-growth agenda,”
10
American businesses know better; a recent Gallup poll revealed that the top concern of small-business owners throughout America is the burden of “complying with government regulations.”
11
“AT HIS CORE, ANTI-BUSINESS”10
American businesses know better; a recent Gallup poll revealed that the top concern of small-business owners throughout America is the burden of “complying with government regulations.”
11
Newsweek
‘s Fareed Zakaria reported that he interviewed numerous business leaders, most of whom had voted for Obama, and that every one of them believe he is “at his core, anti-business.” The businessmen griped that Obama has no business executives in his cabinet, that he rarely consults with CEOs other than for photo-ops, that he has no private-sector experience, that he clearly prefers government and nonprofit work to that of private business, and that his tax and regulatory policies are uncertain.
12
As
Washington Post
business columnist Steven Pearlstein wrote, “There is no denying it—bad blood has developed between big business and the Obama administration, and that’s not a good thing. Business executives dislike the uncertainty created by healthcare reform and financial regulation…. They see a wave of new regulation heading their way after years of writing their own rules.”
13
‘s Fareed Zakaria reported that he interviewed numerous business leaders, most of whom had voted for Obama, and that every one of them believe he is “at his core, anti-business.” The businessmen griped that Obama has no business executives in his cabinet, that he rarely consults with CEOs other than for photo-ops, that he has no private-sector experience, that he clearly prefers government and nonprofit work to that of private business, and that his tax and regulatory policies are uncertain.
12
As
Washington Post
business columnist Steven Pearlstein wrote, “There is no denying it—bad blood has developed between big business and the Obama administration, and that’s not a good thing. Business executives dislike the uncertainty created by healthcare reform and financial regulation…. They see a wave of new regulation heading their way after years of writing their own rules.”
13
New York Daily News
owner and publisher Mortimer Zuckerman said that he detects in the Obama White House “hostility to the very kinds of [business] culture that have made this the great country that it is and was. I think we have to find some way of dealing with that or else we will do great damage to this country with a public policy that could ruin everything.”
14
owner and publisher Mortimer Zuckerman said that he detects in the Obama White House “hostility to the very kinds of [business] culture that have made this the great country that it is and was. I think we have to find some way of dealing with that or else we will do great damage to this country with a public policy that could ruin everything.”
14
Likewise, Verizon CEO Ivan Seidenberg issued a blistering indictment of the administration’s anti-business posture. “By reaching into virtually every sector of economic life,” said Seidenberg, “government is injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses.” This denunciation was especially noteworthy because Seidenberg has strongly supported Obama and tried to cooperate with the administration on all its major agenda items, including healthcare, finance reform, and energy. Nevertheless, Seidenberg admitted he was “troubled” by Obama’s agenda and had “reached a point where the negative effects of these policies are simply too significant to ignore.”
15
15
George Buckley, CEO of 3M, is even more blunt about Obama. “We know what his instincts are,” says Buckley. “He is anti-business.” Calling the president’s policies “Robin Hood-esque,” he suggests manufacturers like 3M might have to move production abroad in order to stay competitive.
16
“Politicians forget that business has [a] choice,” Buckley adds. “If it’s hostile, incrementally, things will slip away. We’ve got a real choice between manufacturing in Canada and Mexico—which tend to be pro-business—or America.”
17
Indeed, Obama’s anti-business animus, not unexpectedly, has severely affected the economy. Former Federal Reserve governor Kevin Warsh noted, “Owing to a less-than-assured economic outlook and broad uncertainty about public policy, employers appear quite reluctant to add to payrolls.”
18
“EVERYBODY’S AFRAID OF THE GOVERNMENT”16
“Politicians forget that business has [a] choice,” Buckley adds. “If it’s hostile, incrementally, things will slip away. We’ve got a real choice between manufacturing in Canada and Mexico—which tend to be pro-business—or America.”
17
Indeed, Obama’s anti-business animus, not unexpectedly, has severely affected the economy. Former Federal Reserve governor Kevin Warsh noted, “Owing to a less-than-assured economic outlook and broad uncertainty about public policy, employers appear quite reluctant to add to payrolls.”
18
Perhaps the most brutal criticism of Obama’s anti-business agenda came from Steve Wynn, CEO of Wynn Resorts. During a company conference call, Wynn declared,
And I’m saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime. And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right. A President that seems, that keeps using that word redistribution. Well, my customers and the companies that provide the vitality for the hospitality and restaurant industry in the United States of America, they are frightened of this administration. And it makes you slow down and not invest your money. Everybody complains about how much money is on the side in America.
19
Continuing his tirade, Wynn, himself a Democrat who supports Democratic Senate Majority Leader Harry Reid, claimed we haven’t heard the kind of talk Obama employs “except from pure socialists…. Everybody’s afraid of the government and there’s no need soft peddling it. It’s the truth…. And I’m telling you that the business community in this country is frightened to death of the weird political philosophy of the President of the United States. And until he’s gone, everybody’s going to be sitting on their thumbs.”
20
Even liberal columnist Al Hunt conceded that, though he doesn’t think the president is anti-business, “Obama should realize that’s what he too often conveys.”
21
20
Even liberal columnist Al Hunt conceded that, though he doesn’t think the president is anti-business, “Obama should realize that’s what he too often conveys.”
21
Yes, he does—but he sure doesn’t seem hostile when it comes to the government sector. Consider, for example, remarks Obama made during a public appearance after a woman told him she’d been laid off from her government job. “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,” the president said. “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.”
22
A month later, Obama’s treasury secretary Timothy Geithner told the House Small Business Committee that the administration believes it has to raise taxes on small businesses so it can avoid having to “shrink the overall size of government programs.”
23
22
A month later, Obama’s treasury secretary Timothy Geithner told the House Small Business Committee that the administration believes it has to raise taxes on small businesses so it can avoid having to “shrink the overall size of government programs.”
23
Obama has even asked Congress to allow private debt collectors to call the private cell phones of people who owe money to the federal government.
24
This proposal didn’t sit well with consumer groups or many Democrats, but even privacy concerns will not prevent this president from ensuring the government doesn’t have to go on a diet.
24
This proposal didn’t sit well with consumer groups or many Democrats, but even privacy concerns will not prevent this president from ensuring the government doesn’t have to go on a diet.
Meanwhile, the tone-deaf administration defiantly denies the truth before our eyes. Jared Bernstein, a top White House economic adviser, hilariously proclaimed, “President Obama is obviously deeply pro-business, pro-markets.”
25
THE OSAWATOMIE SPEECH25
In chapter six we briefly discussed Obama’s December 2011 speech at Osawatomie, Kansas. The president’s comments there so thoroughly revealed his true views on business, and offered such a penetrating gaze into his attitude toward the entire free-enterprise system, that they deserve closer scrutiny here.
Co-opting the memory of Teddy Roosevelt, Obama criticized the view that “the market will take care of everything”—in other words, he blasted supporters of a totally unregulated market. This was an obvious straw man, since even the purest conservatives don’t advocate it, but Obama suggested that not only do conservatives support it, they actually implemented it. “It doesn’t work. It has never worked,” Obama insisted. “It didn’t work when we tried it during the last decade. I mean, understand, it’s not as if we haven’t tried this theory…. We simply cannot return to this brand of ‘you’re on your own’ economics if we’re serious about rebuilding the middle class in this country…. It results in a prosperity that’s enjoyed by fewer and fewer of our citizens.”
26
26
Obama was disingenuously implying that conservatives favor abject economic anarchy, an economy utterly free of laws, regulations, and fairness, as if believing in a free market means you oppose anti-trust rules and other laws that prevent unfair business practices.
At the same time, Obama, perhaps unwittingly, revealed he has little faith in free markets at all. To him, only the strong arm of government can achieve equal opportunity, more equitable income distribution, and economic growth. Only if the government provides a college education for everyone can we compete in the global market. Only if the federal government steps in and prevents the wealthy from earning too much money will we be able to revive the economy.
Nowhere in his speech did Obama evince any awareness that overregulation, not underregulation, is smothering the economy. Nowhere did he discuss the disastrous effects of his own policies or of the unfairness inherent in government, rather than the market, choosing the winners and losers by fiat, with all the attendant cronyism and corruption that inevitably follows.
Obama views the market as a place of brutal class struggle, where the government is duty-bound to intervene and support the weak against the predations of the strong. But class struggle is not what the American idea is about. “There are no class distinctions in America,” noted Matthew Spalding of the Heritage Foundation in response to Obama’s speech. “That’s why Steve Jobs could start [as] an adopted child in a broken home, start Apple in a garage and become a billionaire eight times over. The real distinction here is caused by the rise of a new governing class of experts, bureaucrats and political elites who insist on ruling us to enforce ‘fairness’ rather than letting us govern ourselves under the rule of law.”
27
THE “BUFFETT RULE”27
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