RUSH: This is also good news, and this comes from the Washington Examiner, and it's about time. You're gonna cheer when you hear this. "Some politicians claim that politicians create jobs. Senate Majority Leader Harry Reid says, 'My job is to create jobs.' What hubris!" It's a John Stossel story by the in the Washington Examiner, John Stossel column. "Government has no money of its own. All it does is take from some people and give to others." Government destroys wealth. Government does not create wealth.
"Since government commandeers scarce resources by force and doesn't have to peddle its so-called services on the market to consenting buyers, there's no feedback mechanism to indicate if those services are worth more to people than what they were forced to go without. ... Some CEOs are upset that people don't appreciate what they do. So they formed a group called the Job Creators Alliance. Brad Anderson, former CEO of Best Buy, joined because he wants to counter the image of businesspeople as evil. When he was young, Anderson himself thought they were evil. But then he 'stumbled into a business career' by going to work in a stereo store. 'I watched what happens in building a business. [My store] the Sound of Music, which became Best Buy, was 11 years [old] before I made a dollar of profit.' In 36 years, he turned that store into a $50 billion company.
"Tom Stemberg, founder of Staples, got involved with the Job Creators Alliance because he's annoyed that the government makes a tough job much tougher. He complains that government mostly creates jobs -- that kill jobs. 'They're creating $300 million worth of jobs in the new Consumer Financial Protection Bureau,' Stemberg said, 'which I don't think is going to do much for productivity in America. We're creating all kinds of jobs trying to live up to Dodd-Frank ... and those jobs don't create much productivity.'" All they're gonna do is shut down others who are creative.
"Now, Stemberg runs a venture capital business. 'I helped create over 100,000 jobs myself,' he said. 'Pinkberry and City Sports and J. McLaughlin are growing and adding employment.' To do that, he had to overcome hurdles placed in the way by government.
'All that we get is grief and more hoops to jump through and more forms to fill out and more regulations to comply with,' complained Stemberg. 'Fastest-growing investment segment in venture capitalism: compliance software.'" The fastest-growing investment segment in venture capitalism -- for those of you in Rio Linda, venture capitalism is where a hedge fund guy or some other person with money decides to risk investing it in a startup, usually tech firm. But not restricted to tech firms. They want to get in on the ground floor of the next big thing. It could be Dropbox, could be Box.net, could be Flipbox, any number of things on the Internet, for example. They want to get in on the ground floor. They might believe in it.
Now that industry whose job is to provide seed capital, the fastest-growing segment in venture capitalism is software to keep you compliant with government regulations. Stop and think of that. The fastest-growing segment of an investment structure, business, is compliance software. "'Compliance' is the big word in business today. Every business has to have a compliance department. But resources are scarce, so these departments suck away creativity. It's one reason that these successful businesspeople don't think they could do today what they did in the past." They have to spend way too much time in compliance, meaning proving that they are following all rules and regulations.
"Mike Whalen, CEO of Heart of America Group, said he got started with loans from banks that took a chance on an unknown: 'It is not an underwriting standard that can be dictated by Dodd-Frank with 55 pages. It's kind of a gut instinct,'" whether or not to invest the money. "But John Allison, who built BB&T Corp. into the 12th-biggest bank in America, says that 'gut instinct' is now illegal," because of Dodd-Frank and compliance. Gut instinct is illegal.
"'It would be very difficult to do what we did then today. It was semi-venture-capital thing. The government regulations [today] are so tight, including setting credit standards, particularly since the so-called financial crisis and since they ... changed the credit standards in the banking industry, making it very hard for the banks to finance small businesses.' These successful businessmen realize that in one way, they profit from the regulatory burden. They can absorb the costs. That gives them an advantage over smaller competitors."
The small competitors can't afford this, don't even get started, so there are fewer competitors. That's how they profit from it. They don't profit because of it per se. It's not something that creates profit. It limits competitors by limiting the number of guys who take a risk and start up 'cause they don't have the money to pay for all these compliance costs and regulatory costs. That's not good. It's keeping people out of the startup market. So, anyway, what's great about this -- and again, this is John Stossel and his syndicated column -- what's great about this is that these people are fighting back. They've had it. They don't like the way they're being demonized.
Now, you watch what happens to these guys. If their group here, the Job Creators Alliance, if it happens to get big and noteworthy, it is going to be become a target just as these guys who founded it are. "Yeah, look these rich guys, trying to blame it on everybody, making excuses for themselves, whine and moan rich guys. Boo hoo hoo, look how hard their jobs are, ha-ha-ha." Do this, folks. Google the following search term: venture capital and compliance. Venture capital and compliance. Google those exact words as a search term and you will get 18,500,000 results. Eighteen million.
One reason that Obama doesn't want companies to be able to contribute to political campaigns is so that they can't fight back. That's why they hate Citizens United, that decision, they hate the fact that corporations, which is just people, can now get involved in the political process. They hate it, they despise it, because that means corporations can fight back, and they don't like this thing. The Job Creators Alliance, no way, these guys are gonna be in the crosshairs of this regime before too long if they're not already.
RUSH: Look at this. This is Reuters: "Hunger Up in US Cities, More to Come: Mayors -- A survey of 29 U.S. cities shows hunger has risen in most of them in the last year and is largely expected to increase in 2012, the U.S. Conference of Mayors said on Thursday. Eighty-six percent of the survey cities reported requests for emergency food aid had increased in the last year, the study by the mayors' group said. Two cities said they had stayed the same." Would you put this out in the middle of an election year? Is this the kind of news that you want? Would you do a study like this and then publish the results? In an election year, you're gonna put out "Hunger is Up in US Cities, More to Come"? Well, they're doing it! "Hunger is Up in US Cities, More to Come." Now, I know Obama is trying to create the illusion he was just inaugurated last month.
I know he's trying with all of his political statements, his appearances and so forth trying to make it sound like none of this that's gone on the last three years happened while he was doing anything about it. He was not around! (interruption) Well, I know it's Thanksgiving, they gotta do stories about hunger, just like Christmas they do stories about hunger like they do at Thanksgiving. But still, my theory is that this is all purposeful. These are the people Obama is gonna be gunning for. First you tell 'em that there's a lot of hunger out there; then you set yourself up as the solution to it. It dovetails exactly with the story we had that one out of two Americans is in poverty now, and now we have "Hunger is Up in US Cities, More to Come"? Who puts this kind of stuff out? The people who think they're going to benefit from it! I guarantee you nobody's putting this thing out to hurt 'em. It's not a bunch of Republicans putting this stuff out. I guarantee you of that. This is the Democrats doing what they can. They think it's gonna help 'em.