Monthly Archives: July 2012

Obama and Our Government Have Hurt Me, Not Helped Me, Every Step of the Way

As Published at FoxNews.com on 7/17/12

By Wayne Allyn Root

I was Obama’s college classmate at Columbia University, Class of ‘83. Almost every one of my classmates were openly socialist or Marxist, with many of these leftist radicals calling for an end to capitalism and “bringing down the system” by destroying the U.S. economy with entitlements, debt, and crisis.

That’s why I have predicted in thousands of media interviews from the first days of Obama’s Presidency that Obama is a radical, with a deep-seated hatred of business owners, a desire to demonize us and destroy America’s faith in capitalism, and a plan to bring down the system by overwhelming our economy with debt and crisis- just as we all learned and discussed at Columbia in our college days.

Well it’s no longer a theory. Obama has come out of the closet. Obama has decided to come clean with his plans for a 2nd term. In a matter of 48 hours he gave us two hints so big you couldn’t miss his intentions if you were blind, deaf, or dumb (my apologies to liberal Democrats with this disability).

First, Obama gave notice that every state could receive a “waiver” to opt out of demanding that welfare recipients must work to receive their benefits. This isn’t some radical right wing conspiracy Obama is trying to wreck. This was a bipartisan law of the land intended to “end welfare as we know it” and passed under Democrat President Bill Clinton. It has worked mega-successfully (with nary a complaint) for almost two decades. Why would anyone, who isn’t a committed radical Marxist intent on exploding entitlements, debt and crisis, try to end this law? Why indeed.

Obama has showed his true colors. He’s not satisfied with 46 million Americans on food stamps, 11 million on Disability (5.5 million in just his first term), millions more on unemployment benefits, and tens of millions on other government handouts. He wants to make it even easier to get on welfare, without any requirement to work. Going to work might get in the way of your ability to vote on November 6th.

This is precisely how you explode the numbers of Americans on welfare, all dependent on government for survival, and all loyal to the Democratic Party that protects their checks.

Then 24 hours later Obama said words that made me sick to my stomach and brought tears to my eyes. Words so vile they are an affront to every American business owner and a reminder of his true beliefs- a deep seated hate and resentment towards capitalist business owners. Obama said that business owners owe our success to government. He actually said that if you’ve built a business, you don’t get the credit. It’s government who has been by your side. You need to give government the credit.

Obama believes government helped me every step of the way as a businessman? Really? Honest to God? With that kind of thinking, I think it’s now safe to say Obama has come out of the closet. Either he’s a Marxist hell bent on demonizing wealthy business owners and destroying capitalism, or perhaps he’s high on that drug he enjoyed so much in his youthful days.

Because the reality is that government has hurt me, every step of the way. Government has NEVER helped me. But Obama is right about one thing- government is always by our side. Unfortunately it ruins everything it touches.

Here’s a synopsis of what government has done for me.

They’ve stolen my hard-earned money that I could have used to expand my business, or start new ones, or invest in stocks and real estate. Instead it went to government in the form of taxes, fees, licenses and workers comp.

Don’t forget the rules, regulations and mandates that made it difficult or near impossible to start a business in the first place.

Or the accountant and tax lawyer bills that could have been put to use creating jobs.

Or the IRS audits that stole valuable dollars and hours that I can never get back- even though every one of them ended up with me owing not a dime. But the damage was already done to an innocent man.

Or the millions my public company spent on complying with ridiculous bureaucratic boondoggles like Sarbanes Oxley- thereby wasting millions of dollars that could have instead created jobs and shareholder value for my investors.

Don’t forget the bills passed by government that literally wiped out multiple businesses that I owned (multiple times).

Yes, Obama has a point. Government is always there by my side- stealing my money, robbing me blind, redistributing what I earned into the hands of people not willing to work as hard or as smart as me, distracting me with thousands of pages of regulations, limiting my options, wiping out jobs, and destroying shareholder value.

Government isn’t a savior or saint. Government is the mafia. They are organized crime with the weight of the law behind them. And under Obama, they are hell bent on turning public sentiment against all of us who own businesses, destroying America’s belief in capitalism, and redistributing our incomes until our businesses are crippled, or out of business. Then government is our only place to turn. That much is now clear after a 48 hour rampage by our President.

If we are to save this economy, capitalism, our jobs, and this country…one thing is crystal clear- Obama must go.

Wayne Allyn Root is a Capitalist Evangelist and serial entrepreneur. He is a former Libertarian vice presidential nominee. He now serves as Chairman of the Libertarian National Campaign 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

Obama- The Great Jobs Killer

Published at Glenn Beck’s web site TheBlaze.com on 7/11/12:

By Wayne Allyn Root

Read this commentary and weep. Because I wrote it two years ago, almost to the day. I called Obama “the Great Jobs Killer.” It was published in my column in the Las Vegas Review Journal on July 4, 2010. See: http://www.lvrj.com/opinion/barack-obama–the-great-jobs-killer-97758294.html

My commentary was quoted in Time magazine, and widely across the Internet. Yet as you read it again (below), look closely at the words. It could have been written today- after 4 consecutive months of disastrous jobs reports. Nothing has changed. Obama was a highly effective jobs killer back in 2010…just as he still is in 2012. Nothing happening to the economy today should come as a surprise. It was all clear on inauguration day 2009, as we installed a radical progressive in the White House who would spend, tax, and overwhelm the system with debt, stimulus, bailouts, and entitlements, bringing our economy to it’s knees. Perhaps someone should have listened.

None of this is a surprise to fiscal conservatives. We predicted it. We called it like Babe Ruth pointing to right field before hitting a home run to that exact spot. Maybe it’s time American voters listened to the people who got it all right.

Here is the column in it’s entirety from July 4, 2010:

As former President Ronald Reagan might have said, “Obama, there you go again.” The current occupant of the White House claims to know how to create jobs. He claims jobs have been created. But so far the score is Great Obama Depression 2.2 million lost jobs, Obama 0 – a blowout. Obama is as hopeless, helpless, clueless and bankrupt of good ideas as the manager of the Chicago Cubs in late September. This “community organizer” knows as much about private sector jobs as Pamela Anderson knows about nuclear physics.

It’s time to call Obama what he is — “The Great Jobs Killer.” With his massive spending and tax hikes- rewarding big government and big unions, while punishing taxpayers and business owners- Obama has killed jobs; he has killed motivation to create new jobs; he has killed the motivation to invest in new businesses; or expand old ones. With all this killing, Obama should be given the top spot on the FBI’s Most Wanted List.

Meanwhile, he has kept the union workers of GM and Chrysler employed (with taxpayer money). He has made sure that most government employee union members got their annual raises for sleeping on the job (with taxpayer money). He made sure that his voters got handouts mislabeled as “tax cuts” even though they never paid taxes (with taxpayer money). And he made sure that major campaign contributors collected billions off government stimulus (with taxpayer money). As far as the taxpayers- the people that actually take risks with our own money, to create small businesses, and jobs, and pay most of the taxes- we require protection under the Endangered Species Act.

You won’t find proof of the damage Obama is doing on Wall Street, but rather on Main Street. My friends are all part of the economic engine of America: SMALL Business. Small business creates 75% of new jobs (and a majority of all jobs). I called one friend who was a wealthy restaurant owner. He says business is off by 60%. He’s drowning in debt. He won’t last much longer. His wealth is gone.

I called another friend in the business of home improvement. He says business is off 90% from 2 years ago. NINETY PERCENT. My contractor just filed personal bankruptcy. She won’t be building anymore homes. The hair salon where I’ve had my hair cut for years closed earlier this year. Bankrupt. But here’s the clincher — ESPN ZONE just closed all their restaurants across the country. ESPN ZONE! If they can’t make it selling cheap food and overpriced beer with 100 big screens blaring every sporting event on the planet, to a sports-crazed society, we are all in deep, deep trouble.

I’ve polled all my friends who own small businesses — many of them in the Internet and high tech fields. They all agree that in this new Obama world of high business taxes, income taxes, payroll taxes, capital gains taxes, and workers compensation taxes, the key to success is to AVOID employees. The only way to survive as a business owner today is by keeping the payroll very low and by hiring only independent contractors, or part-time employees provided by temp agencies. The days of jobs in the private sector with big salaries, full benefits, and pensions are over. We’ve all seen where those kinds of jobs get you as a business owner—in bankruptcy court, or surviving on government welfare like GM and Chrysler.

Or in the case of government itself — completely insolvent, but surviving by ripping off taxpayers and fraudulently running printing presses at the Fed all day and night to print money by the trillions. Unfortunately, small businesses don’t have the power to impose taxes or print money. So unlike government, we’ll just have to cut employees and run lean and mean.

It has now become clear that, outside of the burgeoning field of Census Takers, there will be no major increase in new jobs for years to come. Outside government, Obama has created a wasteland of economic ruin and depression that looks much like the landscape of Mel Gibson’s first movie “Mad Max.” Without a printing press in Obama’s world, you’re just plain out of luck.

The days of believing the Obama propaganda about a jobs recovery are over. The trillion dollar corporate handouts (neatly named “stimulus”) may have kept big business in the money for the last 18 months, and artificially propped up the stock market, but small business is the real “canary in the coal mine.” My small business-owning friends aren’t creating one job. Not one. They are shedding jobs. They are learning to do more with fewer employees. They are creating high tech businesses that don’t need employees. And many business owners are making plans to leave the country.

In a high tech world where businesses can be run from anywhere in the world, Obama has a problem. His one trick pony- raise taxes, raise taxes, raise taxes- is chasing away the business owners he desperately needs to pay his bills.

So who is going to pay Obama’s taxes? Not his voters. They want government to pay them. Who is going to create Obama’s jobs? Not his voters- they’ve never created a job in their lives.

So what is Obama going to do? Maybe he can get Pamela Anderson on the line.

Author’s Update in 2012: Think of the pain and misery that could have been saved, if only someone would have listened. Obama’s Keynesian economic plans do not work. Let’s compare Reagan’s economic plan to Obama’s. After being elected in 1980, President Reagan immediately got to work doing the exact opposite of Obama. He instituted Supply Side Economics. Reagan dramatically cut income taxes, cut capital gains taxes, cut domestic spending, cut entitlements, cut rules and regulations, and praised business. He was a cheerleader for business. Reagan understood the words of President Calvin Coolidge: “The business of America is business.” Instead of demonizing, denigrating and punishing business owners, he praised, motivated and rewarded them.

Now let’s look at the results under Reagan. 12 consecutive years of massive economic growth- the longest economic expansion in U.S. history. Massive GDP growth. Massive job growth- over 20 million new jobs in a short period of time. Massive tax revenue increases. Prosperity. Happy days were here again. It became exactly what Reagan predicted- “Morning in America.” Isn’t that an amazing magic trick? You treat business owners, job creators, financial risk-takers, and investors nicely…and they respond by enthusiastically producing success. What a miracle. Voila! You get jobs, growth, increased tax revenue, economic expansion. It’s not a guess…it’s not a miracle…it’s a fact.

Yet under Obama we have far different results. Devastation of the private sector. Disaster. No jobs. More Americans joining the disability and food stamp rolls than the job rolls. Anemic GDP. Real estate collapse. Manufacturing collapse. The lowest business startup rate in 30 years. 40% of our assets have disappeared in only 4 years. We have our country’s credit rating downgraded for the first time in history. Under Obama it’s “Mourning in America.” Coincidence?

Wayne Allyn Root is a Capitalist Evangelist and serial entrepreneur. He is a former Libertarian vice presidential nominee. He now serves as Chairman of the Libertarian National Campaign 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

The Economic Ignorance Gap Between Liberals and Conservatives

As published at FoxNews.com on Thursday 7/5/12

By Wayne Allyn Root

Good old John Edwards was actually right about one thing. He said there were two Americas. Under Obama, the John Edwards fantasy has come true. The first America is represented by those who work in the government sector (who almost always support Obama and vote Democrat), and who think the private sector is doing fine. The second America is represented by private sector entrepreneurs, small business owners, and job creators (who almost always support conservative candidates and causes) who know the terrible truth – the economy is in horrible shape. The difference is due to economic ignorance. To save America, we must ignore those in the government sector and start listening to those in the private sector who are living at “ground zero.” They are the experts. They have “boots on the ground.” They understand first-hand what Obama’s policies have created – complete economic collapse.

The dirty secret rarely discussed or explained by the media is this gap between what conservatives think of the economy versus what liberals think. See the polls. Democrats think the economy is in recovery with a bright future. Republicans think the economy is in horrible shape, and worsening. How could two groups look at the same economy and see things so differently? Why doesn’t the media discuss this disparity? The simple truth is the media doesn’t like the answer.

The truth is Democrats who so want to support their President are simply delusional, or more likely, ignorant of basic economics. Quite frankly, it’s hard to blame them. Most Democrats I know work for big government, a big union, a big corporation, or the media. They don’t sell anything. They don’t own a business, or work on commission. They are paid for just showing up, never based on performance or profits. They don’t know about budgets, profits, or losses. They get a safe paycheck every week, have a pretty much guaranteed job for life, and a pension when they retire. They are nice people, but don’t have a clue about what’s really going on, because they don’t sell things on Main Street. Nor do they have any of their own money at risk. Nor do they notice or care if their employer (the government) bleeds billions of dollars in losses. They can see only as far as their own weekly paycheck.

Most Democrats simply punch a clock…and get paid week in and week out…the same as last year…and 5 years ago…and 10 years ago. As a matter of fact they get automatic raises every year if they work for government. As long as they still have their job (which 99% of government employees do), their lives are pretty much untouched by the economic tragedy around us. No one is saying they are bad people. They aren’t. But they sure aren’t experts on how you create jobs or turnaround an economy.

The private sector is a completely different story. Most of my friends who are Republican, conservative, or Libertarian either work for themselves or get paid based on commission or performance (real estate brokers, stockbrokers, insurance brokers, mortgage brokers). They all know that the USA is in total economic collapse and headed for a Greece-like disaster. They know because their incomes are down by 20%, 30%, 50% and more. The private sector is devastated from coast to coast. We are all shell-shocked. We’ve never seen anything like this in our lifetimes.

So there you have it. The “Economic Ignorance Gap” explained. The people who live in a government world have the same basic income year after year. They know zero about economics, or the risks of using their own money to run a business on a budget (or go broke and lose everything). In their world, government takes care of you, hands you a check, protects your job for life, and allows you to retire early on a $100,000 pension. Their economy is just fine. They are blissfully ignorant and protected from the harsh reality of the real world. Who protects them? Who is their guardian against the realities and harshness of life in the real world? Obama and Democratic politicians like him. No wonder they vote for Obama, idolize him, and ignore reality to protect him. Their jobs and incomes depend on his benevolence and bribery.

The same goes for members of the media. NY Times columnist and economist Paul Krugman is Exhibit A. Paul Krugman- like most government employees- thinks the answer to the bankruptcy of America due to binge spending by government, is more binge spending by government. They give you Nobel Prizes for that? What’s the category- Delusion? Like Krugman, the economic knowledge of Obama’s supporters comes from books. Unfortunately the books were written by Karl Marx.

Then there’s the rest of us, struggling in Obama’s America. Those of us in the private sector, who risk our own money, run our own businesses, or are paid based on performance are being decimated, watching as our life’s work is melting away. Forget about paying ourselves, we’re struggling to keep our doors open…. make payroll… and now, pay for Obamacare. It’s that bad. Oh did I forget to mention that we are being hounded and harassed by the IRS like never before in history. How can anyone run a business and create jobs in an environment like this?

How about some examples…A Wisconsin flag seller just filed for bankruptcy. In Obama’s economy a patriot can’t make a living selling America flags. Next we’ll hear that Bible sellers are going out of business too. The ESPN Zone restaurant chain went out of business. Under Obama you can’t make a living anymore selling cheap food and overpriced beer!

Even Vegas is in trouble. The only casinos making money are those whose revenues are mostly from Macao. Their Vegas operations are dying, but they make so much money in China it doesn’t matter anymore.

And then there’s the NFL- the richest sport in the world can’t fill stadium seats anymore. Watch any sports event nowadays and you’ll see wide swaths of empty seats. You can’t sell anything in Obama’s America- not even tickets to popular sports events.

Think these are isolated examples? Last week’s announcement that U.S. manufacturing activity plummeted to the lowest level in 3 years proves this is a slow-motion economic collapse under Obama. Just like in Europe, add together a toxic stew of big taxes, big spending, demonization of business owners, too many government rules and regulations, union intimidation, IRS intimidation, billions wasted on green energy, and lawyers trying to sue us all out of business (if the unions, government regulations, and IRS haven’t already succeeded)- and you get economic disaster. It’s all happening right now, right in front of our eyes. It’s pretty simple to connect the dots.

So the “Economic Ignorance Gap” tells it all. Anyone who makes a living by selling something, anything at all, is in deep trouble. They see an ever worsening disaster under Obama- up close and personal. They fear for the survival of their businesses and they are terrified for the future of America. These are the people we ought to be listening too. The private sector is in distress. We see and feel this Obama Great Depression deepening.

The Democrats who tell pollsters “everything is fine” may be nice people, but they are economically ignorant. Worse their gravy train is based on stealing money from Peter (taxpayers) to pay Paul (themselves). So they aren’t just ignorant- they are biased. They have a rooting interest for an economy based on spending more, so their gravy train continues. No wonder they think things are just fine.

But soon, when government announces there is no money to keep paying for 21 million government employees, or to pay $100,000 guaranteed pensions…their story will change radically.

Don’t believe me? Just ask a government employee in Greece what the end feels like. Obama’s supporters will soon get a dose of economic reality.

Wayne Allyn Root is a Capitalist Evangelist and serial entrepreneur. He is a former Libertarian vice presidential nominee. He now serves as Chairman of the Libertarian National Campaign 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

Long Live Wild West Cowboy Capitalism

As published at Newsmax.com

By Wayne Allyn Root

All of America is moving to Texas- the land of “Wild West Cowboy Capitalism.” Especially the ex-residents of high tax states like California and New York. And, I’ll bet many of the ex-residents of Big Brother tax and spend Massachusetts, Illinois and Michigan are there too.

From 2000 to 2010 a staggering 3.4 million people moved out of New York resulting in a net loss of 1.3 million residents. California was a close second with a net population loss of 1.2 million during the same decade.

While New York and California led the nation in net population loss, Texas led the nation in net population growth. Interestingly, the most new Texans (over 550,000) came from one state- California. They brought with them a remarkable $14.3 billion in income, but even that paled to the almost $1 trillion in assets and income that re-located New Yorkers brought to the Lone Star State. WOW!

So why is everyone running for their lives from New York and California? And why are so many of them heading to Texas? The answer is taxes, regulations, and quality of life. Americans have figured out that high taxes and excessive regulations kill jobs and quality of life. People simply want to have more opportunity for success and keep more of the money they work so hard to earn.

It’s no coincidence that New York has ranked first or second in the nation for tax burden every year since 1977. That includes state income taxes, property taxes, and sales taxes. There is also gas tax of a whopping 49 cents per gallon, and the highest estate and gift taxes in the nation. After grabbing more of your money than any state while you’re alive, New York also steals more of your money after you’re dead. I should know- I left New York 25 years ago and never looked back.

California now ranks first (ie worst) for highest state income tax. Add to that the mantle of worst state in the nation for excessive rules and regulations. It’s no wonder the Milken Institute ranks California as having the worst business environment in the nation. I should know- I left California too.

Lest you think this is some kind of fluke, or that taxes are not the determining factor in this “escape from NY and California,” it isn’t just Texas that is gaining all these fleeing residents. The U.S. Census reported that all of the top 15 states for population growth during the past decade are no tax or low tax states like Nevada, Florida, Arizona, Utah, Georgia, North Carolina and South Carolina. It seems Americans are smarter than politicians give them credit for- they are voting with their feet for lower taxes, pro business attitude, and more economic freedom.

Because no state in the union has a better economy, let’s look “up close and personal” at the Texas miracle. What exactly is “Wild West Cowboy Capitalism and why does it work?”

Texas has zero state income tax, zero capital gains taxes, and zero death taxes. It is a “right to work” state where employees may choose to join a union, but are never forced to. It is pro business and anti-lawyer (discouraging class action lawsuits and the first state to pass a “Loser Pays” law). Texas is also tight-fisted with welfare and entitlement benefits- unlike New York and California. The result of this limited government attitude is people with high incomes, assets, and ambition are moving into Texas, while those who lack work ethic, and feel entitled to handouts are moving out. Good luck to New York and California- we’ll see you in bankruptcy court.

But the most important attribute of Texas is that its state constitution limits the time that politicians can meet. The Texas Legislature is limited to meeting only 4 months every other year. That pretty much explains everything. Texas and my state of Nevada have no state income taxes and the fastest growing populations in America…not in spite of, but because the politicians aren’t allowed to sit in their seats all year long thinking of new ways to re-distribute income, impede business, and destroy jobs.

Let’s look at the remarkable results of favoring hard working job-creators over entitlement addicts, and business owners over lawyers. Texas now has more Fortune 500 headquarters than New York. It tied for the highest state economic growth in America over the past 50 years, while displacing New York as the second largest state economy. The annual Texas economy has passed $1 trillion, accounting for 8.3% of the entire U.S. economy. In the last three years one third of all jobs in America were created in Texas, and in the past decade, more jobs were created in Texas than in the other 49 states COMBINED.

One smart businessman, Andrew Puzder, sums it up. Mr. Puzder, CEO of California-based CKE Restaurants with over 3000 restaurants including Carl’s Jr. and Hardees was recently quoted in the Wall Street Journal. He calls his home state of California “the most business-unfriendly state…” Opening one of his restaurants in California takes 2 years and costs $200,000 more than opening one in Texas, where it takes only 6 weeks. Is it a surprise that CKE has stopped opening new restaurants in California, but plans to open 300 in Texas?

So there you have it. Now you know why businesses, as well as people, choose states that treat them better, give them more freedom, and allow them to keep more of their own money. Imagine that? The results of smaller government, restrained politicians, and lower taxes is dramatically increased wealth, happier citizens with a higher quality of life, and far higher job creation. Who would have thunk it? Long live Wild West Cowboy Capitalism!

P.S. My Texas friends want everyone to know, “Come on down, ya’ll are welcome. Just leave your socialist politics at home.”