Wayne Root: ‘The Obama Great Depression: Why There Will Be No Jobs’

Emailed by Wayne Root to contact.ipr@gmail.com. On a related subject, see Ralph Nader and Ron Paul on Freedom Watch: Alliance Against Corporatism.

The Community-Organizer-in-Chief Forms Unholy Alliance Between Big Brother and Big Business

Poor Obama. He just has no idea how to create a job. He’s changed strategy by 180 degrees…and he’s still grasping at straws. That’s what happens when you hire a community organizer as President. Obama’s previous experience at creating jobs was to extort them in protests against big corporations. But that approach doesn‘t work when you’re President. The President can’t count “jobs extorted.” That is why poor Obama is grasping at straws.

The first desperate act of Obama’s Presidency was to play the socialism card. He thought if government took control over vast swaths of industry — banking, autos, student loans, and healthcare — that would create jobs. Instead job losses accelerated. Then Obama guessed that if government threw large sums of money into job creation that would certainly solve the problem. He soon found that any job created by government costs obscene amounts of money and actually takes a job (or two) away from the private sector.

Then he gave a huge welfare payment disguised as a “tax cut” to his voters — people that never created a job or paid taxes. That added more debt, but didn’t create one job. Next there was a jobs bill that created exactly -0- jobs. Then there were multiple attempts at massive tax hikes. No dice. The American people were repelled. Worse, American business reacted to the uncertainty by killing more jobs, or shipping them overseas — where taxes are lower. The community organizer was stumped.

Back to work organizing more nasty, socialist, job-killing bills such as Obamacare, Cap and Trade, and Card Check. You gotta love Obama’s enthusiasm for unions. Card Check makes it easy to unionize the entire country — even small businesses with 5 employees. Why not? After all, the states with the highest number of union members all lead the country in moving vans leaving the state. And of course we all know how well unions worked out for the automakers, U.S. Postal Service, and government-run public schools. But hey, the desperate community organizer was running out of options.

For good measure Obama threw in lots of sermons to demonize business. That backfired. Unemployment went up, the American people (who are employed by business) got angry, and Obama’s Democratic Party suffered the worst landslide in modern political history.

So, now poor desperate Obama had to re-organize (kind of like a bankruptcy). The marxists, union organizers, lawyers, and Ivy League eggheads he appointed to every level of government weren’t working. So he changed direction 180 degrees — Obama embraced business. Or so the lefty media tried to convince us. But Obama hasn’t embraced business. He has embraced BIG BUSINESS…i.e. corporate America. He has sold out to the biggest companies in America at the expense of small business. He has brought in the CEO of GE and the Daley family to run things. That’s like putting the mob in charge of an entire city. That didn’t work out so well in Chicago. But hey, it’s the only trick Obama has left.

Hiring William Daley may make Wall Street smile, but it won’t create one job on Main Street. He’s the son of the royal family of Chicago. They’ve never created a job in their lives — they’ve taxed, extorted, and zoned in return for favors and money. Daley is a $10 million per year Wall Street big shot. He knows as much about creating jobs on Main Street as the old King of England. And as far as Jeffrey Immelt, the CEO of GE who now heads Obama’s Economic Council…he’s merely along for the ride so he can arm twist the community-organizer-in-chief for another few hundred billion dollars in stimulus funds and solar energy tax breaks for GE.

Here’s the brutal reality. The great community organizer has in fact joined hands with big business in an unholy alliance that will destroy even more jobs. I have nothing against big business. In fact, I love capitalism. But nothing is more dangerous for society than crony capitalism. The alliance of big business in bed with big government distorts capitalism. Together this group’s goal is to create more laws, rules and regulations that destroy the ability of any small business to survive, so that big business holds the monopoly (and all the special interest tax breaks). They want only multi-national companies with armies of lawyers, lobbyists and accountants to survive — a world where the only employers are big government and big business. They want a hybrid of socialism mixed with fascism– a form of corporatism.

Poor desperate Obama has chosen the wrong path once again. America is built on a foundation of small business. Most of the taxes and jobs are created by small business and small entrepreneurial start-ups. Seventy percent or more of new jobs are created by mom and pop businesses. Since 1980 not one net job has been created by big business- the entire increase of net jobs was created by companies with 200 or fewer employees. Yet Obama has now morphed Big Brother with big business to “save the economy.” Remember when Obama talked of “saving jobs.” That didn’t work out too well either. Every time our President mentions “saving us” we should run the other way.

Desperate people make bad choices. Obama has chosen a path to power, not a path to economic recovery. He may have helped his chances of re-election, but I fear he has dealt one final deathblow to the economy. There will be few new jobs in this Obama Great Depression.

Wayne Allyn Root is a former Libertarian Vice Presidential nominee. He now serves as Chairman of the Libertarian National Congressional Committee. He is the best-selling author of “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts.” His web site: www.ROOTforAmerica.com

31 thoughts on “Wayne Root: ‘The Obama Great Depression: Why There Will Be No Jobs’

  1. paulie Post author

    I really like the second half of this, starting with “But Obama hasn’t embraced business. He has embraced BIG BUSINESS…i.e. corporate America.” through the end.

    I hope Wayne makes this a very frequent talking point in his media interviews.

  2. Brian

    Root is a disingenuous political chameleon. You can’t claim to be an anti-corporatist while simultaneously cozying up to the Tea Parties without addressing their corporate ties. The Koch brothers in no sense of the word operate a “small business.” This is something that both Mr. Root as well as the so-called “anti-corporatist” Tea Parties need to address.

    Additionally Root admonishes Obama for being pro-union and a “fascist.” In the historical sense of the term this isn’t possible. Unions were crushed and workers’ wages were suppressed by European fascism.

  3. paulie Post author

    Brian,

    You can’t claim to be an anti-corporatist while simultaneously cozying up to the Tea Parties without addressing their corporate ties. The Koch brothers in no sense of the word operate a “small business.” This is something that both Mr. Root as well as the so-called “anti-corporatist” Tea Parties need to address.

    They are not the Tea Parties, they are organizations that basically feed off the Tea Party phenomenon for their own benefit.

    Additionally Root admonishes Obama for being pro-union and a “fascist.” In the historical sense of the term this isn’t possible. Unions were crushed and workers’ wages were suppressed by European fascism.

    Unions intertwined with government were a key component of the Italian Fascist Corporatist system. From http://en.wikipedia.org/wiki/Fascism :

    In 1919, the Fascists created The Manifesto of the Fasci of Combat (a.k.a. the Fascist Manifesto), written by Alceste De Ambris and Futurist movement leader Filippo Tommaso Marinetti.[105] The Manifesto was presented on June 6, 1919 in the Fascist newspaper Il Popolo d’Italia. For the political system, the Manifesto supported the creation of universal suffrage for both men and women (the latter being realized only partly in late 1925, with all opposition parties banned or disbanded[106]); proportional representation on a regional basis; government representation through a corporatist system of “National Councils” of experts, selected from professionals and tradespeople, elected to represent and hold legislative power over their respective areas, including labour, industry, transportation, public health, communications, etc.; and the abolition of the Italian Senate.[107] In economic and social policy, the Manifesto supported the creation of an eight-hour work day for all workers, a minimum wage, worker representation in industrial management, equal confidence in labour unions as in industrial executives and public servants, reorganization of the transportation sector, revision of the draft law on invalidity insurance, reduction of the retirement age from 65 to 55, a strong progressive tax on capital, confiscation of the property of religious institutions and abolishment of bishoprics, and revision of military contracts to allow the government to seize 85% of their profits.[108] In military policy, the Manifesto called for the creation of a short-service national militia to serve defensive duties, nationalization of the armaments industry, and a foreign policy designed to be peaceful but also competitive.[109]

    The Fascist regime began to create a corporatist economic system in 1925 with creation of the Palazzo Vidioni Pact, in which the Italian employers’ association Confindustria and Fascist trade unions agreed to recognize each other as the sole representatives of Italy’s employers and employees, excluding non-Fascist trade unions.[27] The Fascist regime first created a Ministry of Corporations that organized the Italian economy into 22 sectoral corporations, banned workers’ strikes and lock-outs, and in 1927 created the Charter of Labour, which established workers’ rights and duties and created labour tribunals to arbitrate employer-employee disputes.[27] In practice, the sectoral corporations exercised little independence and were largely controlled by the regime, and employee organizations were rarely led by employees themselves but instead by appointed Fascist party members.[27]

    Genuine wildcat unions are the opponent of the big government-big business-big union conglomerate under fascism, no less than small business and local self-determination.

    On the opposite side of the Nolan chart from fascism, up near or at the top, small business, wildcat unions, limited local government and voluntary civic associations of all sorts can compete and cooperate peacefully.

  4. Brian

    That was some pretty skillful cutting and pasting from a wikipedia article. Too bad it’s not quite representative of what I was talking about. I’m not sure you could classify the USA’s unions as corporatist (especially not against the historical “model” for corporatism which was perfected in PRI controlled Mexico). If you are a student of history (or you read the Wikipedia article to which you linked in its entirety) you would know that Socialist party gains and militant strike action lead to the rise of the Black Shirts in Italy (they would be later punished by Italian fascists after their turn to the right). Additionally, Hitler outlawed trade unions and banned strikes. In this historical context I stand by my previous statement.

  5. Michael H. Wilson

    Wayne do you have the data to support this point that you made, “Since 1980 not one net job has been created by big business- the entire increase of net jobs was created by companies with 200 or fewer employees.”

  6. wayne root

    Michael,

    There are dozens of sources I get info about small business from…Wall Street Journal, Forbes, Fortune, Fortiune Small Business, Money, Inc, Investors Business Daily. The list goes on and on. I try to read a dozen media per day. When I find any stats on small business, I cut them out. I am not home to look through thousanfds of articles I save in my files, but just by Googling the question right now on the fly… I found a research paper put out by the Kauffman Foundation that says exactly what I said in my commentary:

    Kauffman Foundation Research Series:
    Firm Formation and Economic Growth
    Paper No. 1
    2 © 2009 by the Ewing Marion Kauffman Foundation. All rights reserved.

    WHERE WILL THE JOBS COME FROM? Dane Stangler and Robert E. Litan Ewing Marion Kauffman Foundation November 5, 2009

    The key to economic recovery will come in the form of newly created jobs. But where will these jobs come from?

    Using United States Census Bureau data from 2006-2007, this paper examines net new
    job creation in terms of firmage rather than firmsize. Until 2005, we knew that from
    1980-2005, nearly all net job creation in the United States occurred in firms less than
    five years old. This data set also shows that without startups, net job creation for the
    American economy would be negative in all but a handful of years.

  7. paulie Post author

    I’m not sure you could classify the USA’s unions as corporatist (especially not against the historical “model” for corporatism which was perfected in PRI controlled Mexico).

    I would agree that we are not as far down the road of big-institution-confluence corporatism as Fascist Italy or PRI-run Mexico. But we are headed down that road. See:

    http://radgeek.com/gt/2004/05/01/free_the/

    and

    http://radgeek.com/gt/2001/08/22/the_labor.html

    If you are a student of history (or you read the Wikipedia article to which you linked in its entirety) you would know that Socialist party gains and militant strike action lead to the rise of the Black Shirts in Italy (they would be later punished by Italian fascists after their turn to the right).

    That was actually touched on in the section I quoted.

  8. George Phillies

    Right wing baloney.

    “He thought if government took control over vast swaths of industry — banking, autos, student loans, and healthcare — that would create jobs. Instead job losses accelerated.”

    The bank bailouts were in 2008. The President then was BUSH. Why do conservatives tell tales all the time?

    The GM bailout was in December 2008. The President then was BUSH. Why do conservatives tell tales all the time?

    Health care has had *no change* for most Americans. Why do conservatives tell tales all the time?

    Because if they told the truth, they’d be dead in the water, the engine room on fire, and bow and stern both under ten feet of green ocean.

    Jobs? There is a great graph of the job loss rate, going up, up, up–and then turning down until the economy is creating jobs again, even though it is shedding government jobs. And if you color in the months by political party, the first half of the graph is Republican Conservative screwup red. And the second half of the graph is Democratic blue.

    For better or worse–you do not hear me giving the President the credit –the economy bottomed in April-June 2009, has had a very sharp recovery since then despite European socialist thieves screwing things up, and guess what?
    Personal consumption expenditures are higher than they were before the recession started.
    Freight exports — port of Los Angeles container counts–are higher than they were before the recession.
    Air traffic and freight is now back to where it was.
    If you went back into the market in Summer 2009, which requires ignoring Republcian economists. you made a killing. If you were thoughtful, you easily made over 50%.

    Of course, if you get your factons — like facts, but backwards — from gold bug doomer pornographers, you don’t hear about this.

    But what you can hear if you listen very hard is the very few intelligent Republican conservatives, people who do not go near fruitcakes of the Glenn Beck style or assassination advocates of the Alaskan style, who are realizing that if they are not lucky 2012 may be a Republican disaster, because the economy may be expanding hand over fist, solar coolness may no longer be hiding global warming, and a Republican Congress may leave Americans wondering if they elected conservatives, or some splinter offshoot of the Christian right.

    Sleep with Republican conservative media working girls, and you may well come up with interesting social diseases.

  9. Observer

    Although I don’t think the economy is as rosy as Dr Phillies portrays it, I’m sick of WAR and the Republicans blaming Obama for everything. A good part of the GOP’s demise is their refusal to accept responsibility for Bush’s murderous and law-breaking reign. So far, the Tea Partiers that Mr Root is wooing doesn’t seem any better.

    Wayne made very good points in this article, but his obsession with bashing Obama is embarrassing and getting very old.

  10. paulie Post author

    The Democrats and Republicans both screwed the economy, but as for this recovery…all the stats I have seen so far are that jobs are not coming back.

    If Dr. Phillies has other stats I have not seen yet (or other people for that matter), please post them.

  11. Down and Out in Dixie

    Read my lips…no new jobs down south y’all…word of advice, turn that hooptie right around and go back up north if you are coming down here looking for work, son.

  12. Michael H. Wilson

    The AP has published this article: “WASHINGTON (AP) — Industry economists say the U.S. economic recovery is gaining strength, with more firms expressing positive hiring plans than in over a decade.
    A new survey from the National Association for Business Economics finds that economists are more hopeful about overall economic growth, the job market and demand for companies’ products and services by many measures than they have been since the start of the Great Recession.
    The survey found that business decisions are now “being driven by the fundamentals of an improving economy,” said Shawn DuBravac, an economist with the Consumer Electronics Association who analyzed the findings.
    http://www.google.com/hostednews/ap/article/ALeqM5gHPxxqz0QjAwUsaA26laHflQhybA?docId=04cc817e22a24b40b76a0e3dc86463c8

    And I don’t have the time to dig for them figures now, but I have seen numbers showing that the westcoast ports are picking up and along with them truck and rail traffic. Jobs always lag and it is possible we might be in another slump.

  13. Maybe Not

    Maybe they have made plans to hire. But do you have numbers that hiring has already picked up?

    Remember that if people are out of work long enough they are no longer “in the labor force” and that skews the unemplyment numbers.

  14. Steven R Linnabary

    I thought the article was well written, quite possibly the best Wayne has written to date.

    But if I were “pic’n nits” I’d only find fault with the length of the article….too long to be picked up by a daily paper for use as a column, and the lack of any criticism of Obama’s republican co-conspirators.

    PEACE

  15. paulie Post author

    I thought the article was well written, quite possibly the best Wayne has written to date.

    Agreed.

    But if I were “pic’n nits” I’d only find fault with the length of the article….too long to be picked up by a daily paper for use as a column, and the lack of any criticism of Obama’s republican co-conspirators.

    I’m very glad for the criticism of big corporations.

  16. Michael Cavlan RN

    This is a copy and paste from the previous Root article of “progressive model of tax and spend is dead” that he wrote.

    It was unanswered then and still remains.
    So-Here you go

    Dear God.

    If I was a Libertarian I would be deeply embarrassed by W.A.R.

    Wayne Allan Root makes commentary that are Glen Beckian in their delusional, feverish, divorced from reality basis.

    Comments like Barack Obama is surrounded by a “Socialist Cabal.”

    Obama is surrounded by corporatists. People of the calibre of Timmy Geitner. People with very direct connections to Goldmann Sachs.

    People with ties to Goldmann Sachs are not noted for their “socialist” sensibilities. People like George Soros are not filled with Socialist revolution. Well except in the delusional, addled brains of Mr Root and Glen Beck. Ironic that both appear on Fox News.

    George Soros and Goldmann Sachs have made a boatload of money from the foreclosure crisis. From the misfortunes of poor folks. Not a very socialists endeavor is it?

    Of course George Soros has lots of money. To fund politics. So does Robert Murdock, Dick Army and the Koch Brothers.

    In a classic example of divide and conquer.

    Mr Root also makes the case that Ireland and others face a deep economic crisis. He says that it is based on the force of Trade Unions and a society that has all those “bennies” being given away to unworthies.

    Again, that is only in the addled, delusional minds of Mr Root.

    I lived in Ireland for 15 years. I still have family there. So I have a rather deeper and more immediate contact to what is really going on there than Mr Root. Good old WAR.

    The crisis in Ireland was caused by…….

    BANKERS, DEVELOPERS and other wealthy folks having very direct ties to those in government. In the Fiannna Fail, Fine Gael and Labor Parties.

    They pushed to help fuel the economy and real estate bubbles in Ireland.

    Which mirrors pretty damned close what is happening in the United States.

    Ireland does not practice quantitative easing. Unlike the US government.

    So when the bubble pops here, it will hit much harder.

    Maybe then Wayne Allen Root will awaken from his Glen Beckish fevered, divorced from reality, delusional thought process.

    I doubt it though.

    Because then Fox News would not have him on the air. Someone has to lead the divide and conquer strategy that the corporate elite have working “both” sides of the one money party system with two corporate wings.

    Consider this a very direct challenge to Wayne Allan Root.

  17. Robert Capozzi

    gp10: The GM bailout was in December 2008. The President then was BUSH. Why do conservatives tell tales all the time?

    me: There were 2 parts to the bailout of GM…one executed under Bush, the other under Obama. The 08 version involved TARP loans. The 09 version involved funding a pre-packaged bankruptcy.

    Tales are not in short supply, and come from a wide variety of sources, including Ls.

  18. paulie Post author

    Unemployment claims show how many people are officially looking for work, not how many people are actually out of work that would like to work. However, some of the other info at MJPerry and links MHW has put up are more convincing evidence. Thanks.

  19. Hmmm ...

    @10 etc.

    A few more little facts to add to your overly optimistic critique of Mr. Root:

    Housing prices are sliding again, forecasting a double dip …

    The UK 4th quarter shows a decline in economic activity, forecasting a double dip …

    US earnings are not holding up …

    Industrial production index is pointing toward a downturn …

    Consumer confidence is up, of course, but this could be viewed as a contrarian indicator …

    We could still be in the early stages of this 2nd Great Depression …

  20. paulie Post author

    Via the Advocates:

    Jay Leno* JAY LENO ON THE PRESIDENT’S ADVISERS: “Police are looking for a man in Phoenix who robbed a bank and told the teller he wanted the money in twenties, forties and sixties. Authorities believe he could be one of President Obama’s economic advisers.” — Jay Leno, Jan. 12, 2011.

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