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Jewish World Review Feb. 14, 2011 / 10 Adar I, 5771 The Oscars, Obama and Job Creation By Alan Douglas
http://www.JewishWorldReview.com |
President Obama addressed the U.S. Chamber of Commerce, cajoling business executives to "get in the game" and start using their assets to hire more workers. The President urged business to support his "innovation" initiative with increased dollars. Most U.S. Chamber of Commerce members soldiered through the recession and shall warily continue to clutch their working capital. Given government actions that constricted and diverted capital available for business investment from traditional lenders this reaction is not surprising. The credit crunch is especially painful, and critical for small business in America, the primary source of employment growth.
Big business and big government should take note of the top contenders for this year's Academy Award for Best Picture. "The Social Network" portrays Harvard entrepreneurs, Harvard culture and the cutting edge venture capital firms that provide funding to launch Facebook. The entrepreneurs are "top guns", capitalist ninjas, interested in innovation that produces billions, not mere millions. Venture firms supporting the ninjas take great risks by supporting innovation and demand a return commensurate with that risk. The terms are an Internal Rate of Return that gives the firm back its investment in five years and more than 100% return. It is great drama played out in a real life game of high stakes capitalism.
But capitalism is also about the every-day drama where main street where shopkeepers, plumbers, doctors and speech therapists earn their living. In "The King's Speech" an Australian war veteran immigrates to England, reinvents himself as a speech therapist and devotes his life to a private practice help others. No billions, no franchise opportunities, just an old speech therapist without an Oxford or Harvard degree, who manages to help the King overcome a disability and inspire England in wartime. It is also an inspiring film for all of us with disabilities and/or without Ivy League degrees.
Small business people understand that going into business is about the independence of controlling your own fate, about doing what you enjoy and building something. It isn't always innovative, lucrative or profitable. Dry cleaners, day care centers, and speech therapists won't qualify as "innovative" under the President's plan, nor will they stand a chance of obtaining funding in today's credit environment. Investment and working capital for small and medium size American business comes from savings, mortgages, family, friends and in the past, from local banks. These aren't sexy enough for Hollywood or the President.
Last week my friend Chin told me he was delighted that his restaurant was profitable again. He wants to get himself and his wife out of the kitchen and rehire the workers he had to let go during the down turn. But his savings are spent and his vendors and his local bank are still caught in the credit squeeze so he can't hire anyone. I loved the creativity, excitement and wit of "The Social Network." But the next time I need a plumber, dry cleaner, doctor or speech therapist I hope to encounter the independent and caring spirit portrayed in the "The King's Speech." American's small businesses are nimble, flexible and innovative. They will invest in their community and our country's future with their life savings and hire more of their fellow Americans, if the President lets them.
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JWR contributor Alan Douglas, an author, media executive, speaker, and attorney, lives con brio- except when he is grumpy.
Damages and Penalties
© 2010 Alan Douglas
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Arnold Ahlert | |||||||||||||
