Monday, May 14, 2012

Obama's anti-Romney 'Vampire' Ad

Obama's new attack ad against Mitt Romney is ludicrous but makes for a typical Obama-style easy populist sound bite. Obama wants to portray Romney as an aloof rich guy who is fundamentally out of touch with the concerns of average Americans. What Obama doesn't seem to understand is the basic premise of capitalism. Long term, effective economic growth requires a hard-process analysis that understands some businesses cannot be saved. The alternative is Socialism, an approach that requires saving everything, succeeding at nothing and ultimately screwing just about everyone. While I don't believe that Obama is a true Chavez style socialist, I do believe that the President regards government as the central source of economic development. It is also important to remember that Obama has an agenda in attacking Bain Capital that goes beyond his political ambitions. The President is the man for big unions. He might criticize Romney, but ultimately he represents vested interests that are destroying state budgets, are reducing employment opportunities, are driving up living costs and are restricting the free movement of workers.

In the President's mind, government investment should provide not only the wheels on which the American economy will grow (infrastructure, some r+d etc) but also the engine and body of America's economic vehicle. While it is true that government investment can play a beneficial economic role in forging new avenues for growth- see the emergence of the internet, the simple fact is that the center of American economic success is (and always has been) found in America's entrepreneurial spirit. A few current examples.. Microsoft, Apple, Google, Facebook. Each company here was built on the risks that their respective creators took to pursue success AND the support that private investors granted in pursuit of a profit. Obama rips Romney for his role in the demise of GST Steel, but he wilfully ignores Bain's patently obvious successes. A few of Bain's more notable  investments have included Staples, The Sealy Corporation and Domino's Pizza. Together these businesses now employ hundreds of thousands of people (many of whom are not wealthy) and in so have brought economic benefit and opportunity to communities across America. Capitalism is sometimes unpleasant and sometimes unsuccessful, but ultimately, capitalism is the key reason for America's economic success and the high living standards of our people.

American society is a center right society. Romney must run a campaign that directly challenges Obama's failed economic record and his false economic narrative. The erosion of real income growth at the hands of health care/education inflation is an area where Government (including Republicans) must play a greater role to help middle-low income Americans more. However, this does not change the fact that long term economic growth will require opportunity, risk and hard choices.

Romney offers this leadership, while America will head for economic decline under Obama II.

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