Saturday, June 09, 2012

Private Sector is Fine

Why is Private Sector 'not' fine? Are they not getting Capital? No, they have plenty access to Capital thanks to Uncle Ben and his low interest rates; companies are going IPO and VCs continue to fund start-ups.

Are there more regulations than what need to be? No, let GOP prove that. Obama should go for this argument and show how wrong GOP is there. By the way, no American wants repeat of BP Oil Spill in Gulf or Fukushima on USA soil; none of that can be ensured without minimal regulations.

Is there any less market access globally to our Private Sector? No, more trade deals are done; definitely more than what access was there in Bush times. Obama needing more to do is a different story, but for sure he has increased global access for American companies. Further, Obama Admin. has not created problems by declaring China as Currency Manipulator despite what Romney advocates to make Obama and America fail (while in Opposition). Also because of Obama Admin encouragement, Export Import Bank bill was passed and generally more encouragement to Export is given in Obama Administration.

Has Unionism increased in Private Sector? No. Auto industry Unions took cuts and adjusted to new structure. There are no new strikes in Private Sector.

Has Private Sector faced more taxes? No, it has been all tax cuts in Obama Term so far. Sarbanes-Oxley for small companies was refined in Obama term while the original act was by his predecessor. Dodd-Frank regulations are still not enforced nor banks have been forced to take 'write offs' on their mortgages. (Those banks on their own entered into the settlement with States, but that is not the deal with Federal Government.) And despite all this Jamie Damon JP Morgon fiasco continues to happen.

Is Private Sector getting appropriate workers? Sure, no problem there. Is any industry asking for more H1B? There does not seem to be any issue too.

Is Private Sector punished for 'outsourcing' or 'tax shelters' outside of USA? Well no one has heard any concrete laws or regulations during Obama Term. If at all, just check his royally upset Labor constituency for that.

So if Private Sector profitability is determined by General Economic Growth and they are able to hire as many people as they think appropriate for the given 'demand', where is the issue? What should Obama Admin do? Give money from USA Treasury to Private Sector? Or generate 'demand' from thin air? Where are defenders of natural  business cycles?

The so-called uncertainty - that is all creation of Tea Party to take to USA on the brink. Congress does not want to balance what it spends and what it collects; but wants to 'trip' the President when he goes to borrow more to cover the gap Congress has left. Where are deficits-don't-matter-Dick Cheneys?

Truth is unbridled credit expansion to housing sector caused the last recession and that was not the fault of Obama but of uncontrolled, unrestrained Capitalism of Messers Greenspan and Bush. Of course, GOP wants to hide that.

Is it not 'business cycles' part of Capitalism? So when it is a down business cycle, these free market ideologues tell us 'not to intervene, private sector may shrink but eventually would come back'. And that is how it has indeed come back too.

As my past post shows, I am no fan of Labor Unions - Public or Private; nor anyone is denying that Private Sector in USA has seen demand shrinkage. But folks are conveniently forgetting that it has nothing to do with Obama Administration nor they are ready to listen that from Obama. Shame. 

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