Jack Welch is a retired American businessman, who was Chairman and CEO of General Electric from 1981 to 2001. Recently, Welch openly criticized President Barack Obama's administration. Welch said that Obama has an "anti-business" bias which manifests itself through intimidation, trade, taxes and regulation. He also said that the Administration "doesn't have the foggiest idea about business."
In a telling exchange with Elizabeth Warren, the Administration’s pick to head the new federal Consumer Protection Agency, it seems clear that the Administration intends to tighten, not ease, credit. Welch asked, "Do you think credit will be easier to get or tighter?” Warren responded, "It will be more honest." Welch fired back, "More easier or harder?" Warren parried, "I think that's the wrong question." Welch concluded, "Oh I get it." It seems clear from Warren’s responses that she simply did not want to state openly that credit will be tighter and more difficult to get. Implicit in Warren's part of this exchange is that Warren's concern does not lie in expanding the availability of financial credit, and as a result not in taking the steps in her baileywick that would help improve the economy.
Welch suggested that the new financial “regulations are crippling,” and are holding the financial industry back. He recommended that the government should make it easier for companies to invest and expand but instead it is hampering business. "I still maintain that the economy's been terrible and they have not done things to move the economy forward," he said. Headded, "He's there a month and he vilifies Las Vegas… he kills the hotel business.” Welch also noted that the Administration vilified automobile industry bondholders and "smashed [them] to pieces,” calling them “speculators.” Other examples included the lambasted British Petroleum and oil industry businesses, as well as the insurance industry which “gets killed” with the so-called “health care reform.”
Welch expressed his opinion that it would be better if the Republicans took control of Congress in November, because it is better for one party to control the legislature and the other party to control the executive branch. Welch cited Bush as an example: "President Bush misbehaved when he had all his boys in the House and the Senate. These guys don't know how to behave.” And, Welch noted that Clinton was much better when he had Newt Gingrich to contend with.
Welch also suggested that the Obama administration’s vilification of business and entrepreneurs in general is bad for the country and the economy. He said that the government should, “make heroes out of entrepreneurs…they can celebrate business.” He compared Europe to the United States, by noting that in Europe they often do not celebrate business people. As for the United States he said, “We have a culture that says, ‘I want to make a lot of money, I want to make good with my money”…that’s a hero, not a bum.”
Welch told the Obama Administration to, "stop it - you can't go industry by industry… through intimidation, business by business by business.”
I do not see why this kind of criticism would be surprising to anyone. I am sure that Obama supporters will react harshly, suggesting that Obama wants what is best for the country. I agree. I do not question Obama’s motives in relation to what he thinks is best for the county. Obama and someone like Jack Welch have, however, dramatically different views on what is in the country's long term best interest.
Obama does not want to expand business, heavy industry, technology, banking, etc. He does not want to expand the stock market, and let the free market function with minimal interference. Obama thinks that is bad for the country, and when addressing many of his positions Obama has come out and expressly or impliedly said so. From an environmental standpoint, Obama has said that the rates of United States economic expansion over the last few decades is “unsustainable” and needed to be curbed. He has stated that the economic advantage of the West, including the United States, over the rest of the world is not fair and should be remedied. He has stated that business owners and executives make too much money, and should be forced to make less.
He has criticized business and industry for the money they make, for the environmental impacts they have, and for the difference in wealth among individuals in our society. He has stated that health insurance companies are the problem, and not the solution, that the coal industry needs to be destroyed, and that the oil industry needs to be reigned in. He canceled the manned space program, and has eliminated military contracts like the F-22 Raptor, which has a detrimental impact on the high technology industries.
Of course Obama is anti-business. What is surprising to me is not that Jack Welch would say it, but that anyone would even attempt to dispute it. The reasonable argument is not whether Obama is anti-business, but whether his anti-business policies are good or bad for the country long term.
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