Economic Teachable Moment

Today, we saw the DOW downdraft almost 1000 points before settling in with a 350 point loss. There are news reports of a trading error by CitiGroup (partially Govt owned). At any rate, growing concerns over the debt with the PIIGS, the immorally increasing debt of Uncle Sam, an onslaught of entitlement programs and increasing excessive regulatory mechanisms and taxation has left our financial markets very trigger happy, and rightfully so.

Unfortunately, the problems in our economic climate will be increasing due to the numerous missteps by the Obama administration. Reaction to the staggering debt and the unsustainable increase of liabilities you see playing out in Greece this week is a preview of things to come here on Main Street if we don't abruptly change course.

Critical in that new course would be for the Obama administration to about face and embrace the entrepreneur. The strength of our economy is the growth of existing and the emergence of new small businesses, who do the greater majority hiring. As a small business owner, I can tell you regulation has become a significant barrier, and will get worse if the financial reform package, spearheaded by the corrupt Senator Chris Dodd (D:CT), who we have blasted in the past, becomes law. The Obama pledge of not raising taxes on families making less than 250K annually has already been broken, and the extra taxation extracts capital, the mothers milk of business expansion and credit, from the system.

Either the Obama administration is stupidly ill informed on the subject or is attempting to crash the system. Perhaps they could learn a thing or two about the role of the entrepreneur in the success of a growing economy by listening to a recent interview of Carl Schramm of the Kauffman Foundation by Erin Burnett of CNBC.



The solutions to the economic problems for Uncle Sam are strikingly simple for the Obama administration and our congressional leaders, or anyone, to grasp if the motivation is there. It starts with the embracing of the entrepreneur to create new small business opportunities.

Many of these emerging companies will fail, and lessons will be learned. This is the route to take. Turning bailout nation into bailout planet is traveling down a road that will lead to the events you see in Greece. When it happens, you know who to blame.