Monday, October 31, 2011

How to invest like the President

Please don't. [Link]
Here's a great business model.  Start your company with the idea that it's going to go bankrupt.  Then, when it folds, inform your investors that the business was a success because it did exactly what you expected.
That's more or less what Obama has done with every "investment" government has made over that past three years.  The Energy Department's failed green energy loan program is just one example.  It appears that much of the $36 billion earmarked for alternative energy firms, including $500 million to Solyndra alone, has been squandered.  If that money had stayed in the private sector, it would have produced jobs.  As it is, with real unemployment running at 20%, the president has wasted billions on companies that were destined to fail.  That "investment" produced nothing except more debt and slower economic growth.
It is not surprising, given his lack of real-world experience, that Obama does not understand the meaning of the word "investment."  Like most in his party, Obama thinks every kind of government spending is an investment.  His thinking is so twisted that he speaks of all sorts of welfare, including increases in the earned income credit and extension of unemployment benefits past 99 weeks, as an investment.  Spending on affordable housing is an investment, benefits for the homeless are an investment, funding that makes its way to the coffers of teachers unions is an investment.  Just about everything is an investment, except an investment.



No comments:

Post a Comment