I was unable to watch the Obama speech on jobs last night as I was on a long distance drive. Consequently, I listened to his speech on the radio and focused on the content.
As a serial entrepreneur, having created thousands of jobs in my lifetime, engaged in another round of start-ups as well as posessing quite a hefty amount of economics education beyond my undergraduate degree in the subject, I found the impassioned speech remarkably free of content sans the intent to spread a half-trillion dollars around to people quickly (they must be people already lobbying for the cash rather than real entreprenuers) to assuage his standing in the polls.
Here is all you need to know about Mr. Obama’ plan in 5 quick bullet points.
- Most new jobs are not only created by small businesses, it is a subset of small businesses called start-ups.
- Start-ups take time to create from inception, to design, to planning, to funding, to government approvals.
- For even the simplest start-ups in most locations in the US, government permitting and licenses will take about 1 year (and that is for a mere restaurant, try a factory of any type and the time grows exponentially).
- Even if I have a concept, taken the time to design it, finished my business plan, marketed my business plan, found and arranged my financing and am ready to go today, by the time I get my government permits and licenses, most, if not all, of President Obama’s plans will have expired.
- In other words, the plan is irrelevant to jump start real, sustainable job creation.
I could desconstruct the details of his plan point by point should one be able to actually get ahold of a copy – no one in Congress has yet received it – but it is ultimately irrelevant. It does not even acknowledge or enable incentives to bridge the yawning gap in timing for business creation that is even created by the Goverment. There are many other things that are wrong with this plan, but when it is so wrong on such a fundamental level and disdains reality in such arrogant fashion, there really is no reason to waste valuable time in life to analyze it any farther.
I am simply left wondering wheter the President lives on a different planet than I do, but I know the real reason for this proposal. It is a political proposal to buffet the President’s waning popularity by attempting to box his primary opponents in.
That may be good politics, but it is just short of flashing a symbolic obscenity at the unemployed, underemployed, struggling businesses people and entrepreneurs. The President just did a Maxine Waters, but the target was not the Tea Party, it was you. After all, we all know what this was about – not you, not me, not the unemployed – it was about the President himself.