2012 Tuesday: Obama wants the election to be about a topic he doesn’t understand
In Chicago yesterday, President Obama described the essence of his campaign against Mitt Romney. Asked during a press conference about his campaign ads criticizing Romney’s record at Bain Capital in the 1980s and ’90s, Obama disagreed with fellow Democrats’ advice to focus on other issues:
[T]his is not a distraction. This is what this campaign is going to be about — is what is a strategy for us to move this country forward in a way where everybody can succeed?
Well, now. That’s just completely different from every other presidential campaign in history…
Some commentary has focused on what Obama said just before that: his description of the job of president vs. the job of a private equity CEO. And with good reason. There is plenty to address: from his assertion that the president should be involved in helping individual communities plan their economic development, to the obvious conclusion that the job, as he’s described it, is not one he’s done particularly well given the persistent sluggishness of the job market and the economy more broadly.
But what interested me was his summary of private equity:
Now, I think my view of private equity is that it is set up to maximize profits. And that’s a healthy part of the free market. That’s part of the role of a lot of business people. That’s not unique to private equity. And as I think my representatives have said repeatedly, and I will say today, I think there are folks who do good work in that area. And there are times where they identify the capacity for the economy to create new jobs or new industries, but understand that their priority is to maximize profits. And that’s not always going to be good for communities or businesses or workers.
Contra Cory Booker, Harold Ford Jr. and Steve Rattner — who are among the Obama supporters who cautioned him against demonizing private equity — the best reason for Obama to avoid the topic is that he sounds wholly uncomfortable on such foreign terrain.
His dissection of the place of profits in an economy supposedly based on free enterprise comes off like the remarks of an anthropologist recently returned from spending a year among some exotic, savage tribe. But profitability is a concept that comes naturally to most Americans because, unlike Obama, most of us have worked for for-profit enterprises.
Instead, Obama says “maximize profits” as if it’s one element among many when it comes to business (it’s just “part of the role of a lot of business people,” with the others ostensibly at liberty to ignore revenues and expenses), as if he grudgingly acknowledges some possibility that profits can co-exist with a healthy economy.
Wrong. Profits are indispensable to a healthy economy.
If a company is not trying to “maximize profits,” it is not a) trying to satisfy the most customers and thereby earn their business; b) recruiting and retaining the work force needed to deliver appealing products or services; or c) creating or freeing up the capital needed to expand its business.
Oh, and because we know Obama puts a premium on higher tax revenues: “Maximized profits” also mean more earnings for government to tax.
This is the story of America’s economic power. We are not the world’s most important economy, and the most prosperous people, because there are business people for whom “maximizing profits” is not “part of their role.” On the contrary. It’s because the profit motive — and, importantly, the greater freedom from government that our enterprises historically have had to pursue it — has ensured we have gotten the most out of our scarce resources.
Profits are not something to be merely tolerated as long as everything turns out OK for everyone else. They are the best motivation known to man to put as many people and resources as possible to productive work.
And creating new industries, with new jobs, is not incidental to free enterprise. Delivering novel products or services is not the only way to make money, but it is a time-tested way to do so.
This also happens to be the story of Bain Capital. Yes, it invested in businesses that couldn’t be turned around — that is, made profitable — and which had to be closed. But it also found great success in other ventures, some of which still employ tens of thousands of Americans.
Obama wants you to think the exceptions are the rule, at least where Romney and Bain are concerned. In doing so, he betrays his lack of familiarity with the very economy he claims to be trying to shepherd.
– By Kyle Wingfield
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440 comments Add your comment
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
8:31 pm
It’s a sad state of affairs when folks hate others simply for being more successful and hardworking.
I guess it gives them something to do while they wait for their EBT card to get topped off.
Tiberius - Banned from Bookman's and proud of it!
May 23rd, 2012
8:32 pm
Love the bolded (yet hidden) racial code-word in your post, @@
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
8:40 pm
another AJC Blog columnist has posed the question. To which party do blacks owe their freedoms/successes/present standing?
——————–
Typical libtard–can’t fathom that real success doesn’t come from government, much less one political party or another.
Rafe Hollister
May 23rd, 2012
8:49 pm
@@
You out did yourself with the bolding. That is cool!!
Rafe Hollister
May 23rd, 2012
8:50 pm
Do you “owe” someone who accepts you as equal???
elnuestros
May 23rd, 2012
8:51 pm
Kyle should be SO happy that he has such intelligent defenders.
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
9:06 pm
Just curious. Why do big-hearted libtards allow these private capital groups to come in and buy these distressed companies just to “maximize profits”? Why don’t the libtards pay the owners what their outfits are really worth, and then do “the right thing for working people” and save their jobs, and accept a slightly lower profit than the private equity firms would take?
Libtards: Do-nothing hypocrites.
Rafe Hollister
May 23rd, 2012
9:25 pm
LBB
Libs only want to invest your money, spend your money, tax your money, and give your money to their causes. Most charities would have to go out of business if they had to only spend liberals money.
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
9:28 pm
Rafe, it’s no accident that Obozo and the Democrats want to eliminate the deduction for charitable contributions–such contributions and the charities they support reduce the need for government, and, therefore, Democrats.
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
9:42 pm
Funny–some of the same idiots decrying Bain “maximizing profits” are also trumpeting GM’s $7.6 billion profit last year.
iggy
May 23rd, 2012
9:47 pm
Anyone know of the outcome at the EuroTrash smutpit As I understand, France and Italy were gonna gang up on Germany in a attempt to force from them more “bailout the lazier EuroTrash”.
This EuroZipper economy could unravel completely. Can you say Recession Part II? And oh, since ObaManure spent us into oblivion the last go round, there is no more to go round.
Aye-chee-wah-wah!
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
9:50 pm
Fear not, iggy. Angela Merkel of Germany smacked down both Obozo and the Eurotrash arguing for bigger government, more debt, and less fiscal responsibility. And since Germany is one of the few reasonably responsible Eurotrashzone governments, they hold the purse strings, and no Obozo-style economic idiocy will be taking place there.
ODD OWL
May 23rd, 2012
9:50 pm
@ Tiberius 7:54 post…. Wise people learn more from fools, than fools learn from wise people… Bookman is a patient Man… I”m sure he had a very good reason for banning you…
iggy
May 23rd, 2012
9:53 pm
This is fun…
http://www.cnbc.com/id/47520557
iggy
May 23rd, 2012
9:59 pm
Hope you are correct, LBB.
Maybe after Merkel stomps out the EuroTrash fires she can visit the Grand PooBah of the USA, step into the squared circle and give him a few lessons on how to behave like a man instead of a sissyBoy.
Then stuff an apple in Bidens mouth and serve him up for dessert.
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
10:02 pm
I understand that Merkel and Obozo wear the same kind of jeans.
ODD OWL
May 23rd, 2012
10:02 pm
The unemployment rate would be around 5% if it weren’t for the Romney led Republicans filibustering, obstructing, blocking, delaying and scuttling Democrat’s economic legislations in the Congress… When are Mean Mitch McConnell, Herr Jon Kyl, Johnny “one note” Boehner and Pretty Boy Eric Canter going to introduce a JOBS bill before Congress…. The Republicans need to go to work creating Jobs and raising taxes on the rich so they can pay down that massive $11 trillion dollars debt that the Bush/CheneyRomney Regime dumped at the doorstep of President Obama and the Democrats ??? Romney Republicans ===> Bush/Cheney on steroids…
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
10:05 pm
An excellent read:
http://online.wsj.com/article/SB10001424052702304707604577422083169648646.html?mod=WSJ_Opinion_LEADTop
“The Greek government has been practicing a particularly aggressive form of antigrowth austerity. While the private sector shrank in 2011, Greece’s government grew to 49.7% of GDP from 49.6% in 2010…The reality is that Greece’s government is imposing too much austerity on others and not enough on itself. The U.S. is making the same mistake.”
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
10:09 pm
The Republicans need to go to work creating Jobs
——————
Unemployment is down from 9.8% to 8.1% since Americans voted overwhelmingly for Republicans in 2010, Einstein.
Want more jobs? Join with Americans to finish the job we started in November 2010.
iggy
May 23rd, 2012
10:20 pm
ODD OWL
May 23rd, 2012
10:02 pm
E-sckowse me. I believe the libtards had an across the board majority and frittered it away. Aww…so sad. Dont say I told ya so.
iggy
May 23rd, 2012
10:24 pm
“The unemployment rate would be around 5% if…”
LOL. I see desparation has set in or maybe the drinks are taking effect.
AmVet
May 23rd, 2012
10:24 pm
,i>Lil’ Barry: As indicated in the rules, I put up with a lot of name-calling toward public officials, but “Scumbag Obozo” and “Idiot Klown Obozo” are well and truly beyond the pale.
Looks like the serially banned one is working hard on adding one more forum to his list.
Hysterical…
Progressive Humanist
May 23rd, 2012
10:25 pm
All you right wing stooges may want to take a look at this electoral map that is run by a conservative analyst: http://www.electionprojection.com/2012elections/president12.php
Romney doesn’t have a shot. 100% of the people in Kentucky and Arkansas or Mississippi or Utah can vote for Romney, and the popular vote can end up 51.5% to 49.5%, but Romney can’t win because he won’t be able to get to 270 electoral votes.
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
10:27 pm
“Serially banned”? What are you talking about?
Judging by your presence here, it’s apparent Kyle has no rule against the serially stupid.
iggy
May 23rd, 2012
10:34 pm
PH. Good point, however, its a long way to November.
Bullet County
May 23rd, 2012
10:36 pm
Kyle, you’re so sure about what POTUS “doesn’t understand”; but, I don’t see any specifics about the great success of Romney businesses in your article. After all, this is the Governor who was 47th (behind 46 other Governors) in job creation when he was at the Mass. helm. I’m certan that you remember what Newton Leroy had to say about Romney’s job de-construction abilities when Newton had your full support to be leader of this nation.
iggy
May 23rd, 2012
10:37 pm
“Scumbag Obozo” and “Idiot Klown Obozo”
LOL! But I prefen ObaManure,
iggy
May 23rd, 2012
10:42 pm
“47th (behind 46 other Governors) in job creation when he was at the Mass. helm”
Wouldnt it be interesting to see ObaManures Academic records. But OH DARN….he had them sealed. I would hate to jump to conclusions but methinks Barry wasnt qute the stellar student.
DAVETV
May 23rd, 2012
10:49 pm
Odd Owl – you are certainly one odd bird. I hope you are paid up on your health insurance because I seriously think you should go get a CT scan. Things are not working inside your skull the way they should.
MarkV
May 23rd, 2012
10:54 pm
iggy @10:42 pm
Comparing performance as governor with school records – only someone who has manure on brain would suggest that.
DAVETV
May 23rd, 2012
10:55 pm
http://www.weeklystandard.com/blogs/under-obama-30-worst-months-employment-past-25-years_645771.html
Here’s the REAL unemployment rates
iggy
May 23rd, 2012
10:57 pm
MarkZero. Not really. No one goes away the same loser as they were as when they came in. As a parting gift we have for you a can of Turtlewax car polish. Thanks for playing…*POOT*
DAVETV
May 23rd, 2012
10:59 pm
Romney was 47th in job creation when he was Mass. governor. Where did Obama rank in job creation on any list anywhere? Do tell…
ODD OWL
May 23rd, 2012
11:01 pm
@ DAVETV 1049 PM post….Dave is attempting to project his shortcomings onto me… Scape goating, blaming others and Projecting are Republican trait characteristics… Ignorance is the Temple of the presumptous…
DAVETV
May 23rd, 2012
11:16 pm
No Odd, I’m truly concerned that there is something wrong with you. Since everything you type is 180 degrees from reality, I fear you may be close to having a stroke. Do you smell burnt feathers?
The Kid
May 23rd, 2012
11:51 pm
What is a Conservative Republican? Someone who looks in the mirror and lies to him/herslf over and over until they beleive their own lies. That’s what so many of you people portray…; The Emperor Without Clothes. Have fun loonies.
Right
May 23rd, 2012
11:56 pm
LOL…this political assessment from the dude who voted for Newt..LOL. Sir, you have no credibility left…or right.
greg
May 24th, 2012
1:03 am
I see the union THUGS were showing their A$$E$ in South Carolina. Union mentality !!!!!!!!!!!
@@
May 24th, 2012
6:42 am
One positive note on Kyle & myself, who voted for Newt. We weren’t running with the herd.
bu2
May 24th, 2012
1:57 pm
Since Obama doesn’t understand economics, doesn’t understand why we are in a recession, doesn’t have a clue how to get out of it and doesn’t understand the job of the Presidency, why should his campaign be any different?