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Economic Realities Barack Obama Won’t Acknowledge

416px-Brockhaus_BlackoutAmerica is in relative decline compared to our history.  Our only hope to escape from the debt and deficit syndrome that the Democrats have gotten us into, since taking over Congress in 2007, is to grow rapidly – very rapidly.  

Obama’s tax the rich solution to our debt, deficit and growth problems is schoolboy lunacy and naïve arithmetic. The revenue generated will cover our government’s operating costs for less than 10 days.  It will do little or nothing to alleviate our current predicaments.  
Every economist knows this.

Aside from punishing the rich, successful businessmen, bankers, investors and Wall Street – Obama’s strategy for growing the American economy is to grow from the middle class outward. This Marxist idea may sound good on the campaign trail, but there is no evidence that a strong economy can be induced from middle class stimulation.

While some might argue that many companies have originated from a parent’s garage or an inventor’s backyard, that’s not the primary driving force behind a rapidly growing economy. And besides, successful garage start-ups require big-time capital investments and, if successful, become large enterprises in a matter of a few years.

Major companies depend on effective, top-down leadership and effective financing to grow and succeed.  In fact, even successful midsize companies are dependent on dynamic and effective leadership and financing from the top-down.

This takes nothing away from the down-the-line workers, who contribute importantly to the success of any enterprise. But without effective top-down leadership and financing, companies simply don’t grow and make it big-time.

And without big-time private-sector growth, a nation’s economy will not grow and its people will not prosper. Economies simply don’t grow big-time from the middle class outward.  
National growth is always a top-down, private-sector leadership and financing challenge – and that’s where Obama and his fellow schoolboys are mistaken.

Image: Brockhaus reader blindfolding himself; author: H. Krichel;3.0 Creative Commons Attribution-Share Alike 3.0 Unported license

William Pauwels

William A. Pauwels, Sr. was born in Jackson Michigan to a Belgian, immigrant, entrepreneurial family. Bill is a graduate of the University of Notre Dame and served in executive and/or leadership positions at Thomson Industries, Inc., Dow Corning, Loctite and Sherwin-Williams. He is currently CIO of Pauwels Private Investment Practice. He's been commenting on matters political/economic/philosophical since 1980.