Another fantastic effect of Obama’s anti-capitalism recovery policies can be seen in a new report from the Federal Reserve. Titled “Changes in U.S. Family Finances from 2010 to 2013,” the report noted that small business ownership in America took a heavy hit under the Obama presidency. Even as the administration was preaching the glories of its economic recovery from the pulpit, small business ownership fell to its lowest levels ever.
This kind of thing simply doesn’t happen when the economy is on its game. Yes, the stock market is doing very well and job numbers are increasing month to month, but that’s only a small part of what makes our free market society go round. When you consider the terrible labor force participation rate, it’s obvious that something isn’t clicking at the middle class level.
Developing Personal Wealth
There are really only a few viable paths to wealth in America – you make yourself so valuable that companies are willing to pay you a big salary or you start your own business and build it into a success. You can also invest your way to wealth, but it helps if you have done one of the other two things first so you have some seed money. It’s clear, though, that fewer Americans than ever are starting their own businesses. And we already know that there are far fewer well-paying career paths than there were a decade ago.
The Federal Reserve report says that the percentage of U.S. families with an ownership stake in small business fell from 13.3% to 11.7% from 2010 to 2013. Fewer small businesses is not just a problem in and of itself; it means fewer jobs, fewer opportunities for advancement, less innovation, less competition…it means that free market capitalism is not working as intended. Why would that be? Liberals will tell you it’s because capitalism is deeply flawed and best left on the junk heap of failed ideologies. Conservatives – and anyone with a properly functioning brain – will tell you something very different.
Capitalism Isn’t the Problem
The truth is that capitalism works just fine. The level of world leadership America has attained on every meaningful metric proves that we did something right. But what people forget is that America wasn’t always like this. Even in the late 1970s, the country was in a slog. The majesty of post-war America was all but forgotten. It wasn’t until Ronald Reagan smashed taxes and crushed federal regulations that the country was allowed to be great again. And great it was. Great it was for a long time. Even the liberal policies of Bill Clinton weren’t enough to prevent the economy from soaring.
There are always going to be periods of recession followed by periods of recovery. But Obama’s “recovery” is barely distinguishable from his recession. Until we get someone in the White House that can take the reins off the beast that is U.S. free market capitalism, a true recovery will remain a phantom.