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Nelson Davis

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We Did Build That

Posted: 07/26/2012 10:39 am

During any heatedly contested political battle, passions and rhetoric run hot and it's easy for the combatants to stumble off the page and into the ever present political quicksand. I write about small business, not politics, but the candidates vying to occupy the White House have been talking about the small business community in ways that I think miss the point.

The present controversy began with a quote from a President Obama speech delivered on July 13 in Virginia. Whether he meant to say these words this way or not can be debated, they came out of his mouth like this: "If you've got a business, you didn't build that." It didn't take long for the presumed Republican candidate Mitt Romney to use those words as kindling wood for a hot campaign fire. For me as an advocate for small business and the entrepreneurial spirit in America, they point to an important philosophical discussion about the relationship between government and the private sector.

I say that business and government working together for a couple of hundred years is what has lifted our country to a historically great level in world history. If America was only about individual enterprise without a strong central government, we'd be a series of fiefdoms in search of a common mission and struggling to rise to even a third-world level. However if the country labored under a dominant and hyper weighty national government without room for real enterprise, we'd be circling the drain just like Greece and some American cities. All government revenue comes from taxes, fees and levies, so they need profitable enterprises as their own source of "mother's milk." Business has proven it can exist without a capable central government, but that government would wither and die without the efforts of enterprising citizens and the fruits of their business creations.

Back to the jousting politicians and what all the heat is about. Candidate Romney says the President's attitude shows a lack of appreciation for personal initiative and success. I give President Obama some slack because in context he was probably referring to major infrastructure projects such as highways, rail lines and power grids when he said "you didn't build that." In truth, our cornerstone infrastructure growth was often based on joint ventures between governments and entrepreneurs.

The great infrastructure that enables the movement of goods and people from coast to coast is a major example of how free enterprise and the federal government worked together. The First Transcontinental Railroad line was opened in 1869, celebrated by the "last spike" being driven at Promontory Summit, Utah. It was enabled by Congressional legislation passed during the Civil War. Congress supported it with 30-year U.S. government bonds and they tossed in a series of land grants of government owned property. The Washington wags encouraged and enabled, but this breakthrough transportation system was built by private enterprise including the Central Pacific Railroad of California Company and the Union Pacific Railroad. The complete interstate highway system championed by President Dwight Eisenhower took a long time but as of 2010 it has 47,182 miles of roadway. The system is one of the world's best and made it much easier to ship your goods or get the family to grandmother's house. Perhaps you are of an age that remembers the advertising slogan "See the USA in your Chevrolet."

For me this debate is not about the usual Liberal or Conservative posturing that feeds the Washington beltway machinery and talk-radio zealots. It goes to the very heart of what America is, was and can be. It may be my Libra nature, but I believe a fine balance between governments and private enterprise is the way forward. The men and women of 18th-, 19th- and early 20th-century United States of America were a very enterprising lot. Every farmer, accountant, blacksmith or merchant was classified as a business owner! They didn't rely on the Federal government or any bureaucracy to make things happen by building communities and engaging in commerce. Their truth was that government was meant to be part of their support structure, not their rival or replacement.

There are a lot of people on Capitol Hill, in universities, and at unemployment offices across the land that either forgot or never knew how wealth is actually created. Without recommending a specific tome, searching online with the phrases wealth creation, capitalism and freedom will bring you a number of potential books on the subject. I sometimes wonder if retail politics in our country has a rule against telling voters the truth. Was Jack Nicholson's character in A Few Good Men correct when he said to Tom Cruise's character "You can't handle the truth"?

It is my hope that at some time during the amazingly long campaign for the presidency, the two finalists spend some time on encouraging the people who own, operate or work in businesses of all sizes, but especially the small and emerging enterprises. That is where the American dream began and should live today. Look at the Fortune 500 and you see large companies that took root as small businesses. The McDonald brothers had one hamburger stand in San Bernardino, Calif. Henry Ford failed with the Detroit Automobile Company and the Henry Ford Company before raising less than $100,000 to try again and you know how that turned out.

Politicians who want to take credit for all good things without acknowledging the private-public partnership remind me of a wise story from the great motivational guru, Earl Nightingale. The story was that a clergyman rode past a well groomed farm with great fruit trees, lustrous growths and a beautiful homestead. He rode up to the farmer and said to him: "God has blessed you with a wonderful farm." The farmer replied: "Yes it is a wonderful farm God has blessed me with, but you should have seen it when He had it all to Himself."

 

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During any heatedly contested political battle, passions and rhetoric run hot and it's easy for the combatants to stumble off the page and into the ever present political quicksand. I write about smal...
During any heatedly contested political battle, passions and rhetoric run hot and it's easy for the combatants to stumble off the page and into the ever present political quicksand. I write about smal...
 
 
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HUFFPOST SUPER USER
2Patriotic4U
IN GOD WE TRUST!
04:27 PM on 07/27/2012
Small, medium and large alike, Obama continues to expose his total ignorance about and his deep seeded hatred for the business community, unless they contribute to his campaign.

MITT 2012!
03:59 PM on 07/27/2012
Poor, ambiguous wording from a so called "professor"? ”HE DID NOT HOLD THE TITLE OF PROFESSOR OF LAW,” SAID MARSHA FERZIGER-NAGORSKY, AN ASSISTANT DEAN FOR COMMUNICATIONS AND LECTURER IN LAW AT THE UNIVERSITY OF CHICAGO SCHOOL OF LAW. The American public deserves to see Obama's university credentials.
HUFFPOST SUPER USER
bygbubba
12:37 PM on 07/27/2012
The less people that actually work to produce food, clothing, cars, houses and other goods, the poorer the people. Therefore, bigger government means poorer people. Make it simple stupid.
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realsurfin
Pardon me, can you help out a fellow American
10:11 PM on 07/26/2012
we built this city. We built this city on rock n roooooooooooooooooooooooooll.

GOVERNMENT AND PRIVATE BUSINESS GO HAND IN HAND. PBS is not bad! Who cares if two of the same sex want to shack up forever? Science is not blasphemy. SPACE IS THERE TO BE EXPLORED. AND EXPLOITED. IT CREATES JOBS THAT DON'T HURT PEOPLE AND IS THE POWER INCUBATOR OF NEW TECHNOLOGY! Religion should be spoken in quiet Rooms Mitt! CLEAN AIR, YOU CANNOT SEE AND TASTE IS GREAT. Water sports are better without tar balls, sewage and debris. FISH BREATH! YOU DON'T THROW CIGARETTE BUTTS OUT YOUR CAR WINDOW DURING A DROUGHT, no matter how long the lease. One is a lonely number, unless that is the income bracket your in. Then you have endless friends. Who can buy you really expensive things LIKE THE PRESIDENCY! SINCE WHEN DID SCHOOLS ALL BECOME CHURCHES? ARE THEY GOING TO SERVE COMMUNION FOR LUNCH?. IF ROMNEY WINS WILL HE GIVE STUDENT LOANS FOR A COURSE IN GOLF AND TENNIS? WOULD IT BE A MAJOR OR AND ELECTIVE? A strong defense is good but making friends is not to be underestimated. PEOPLE THAT HAVE SERVED IN THE MILITARY DESERVE AS MUCH AS THE GUY IN CONGRESS. Doesn't Citizens United really give the KOCH Bros. Inc. and all the other gazillionaires 2 votes? ANY FOOL KNOWS A CORPORATION IS NOT A PERSON
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HUFFPOST SUPER USER
PotomacOracle
The Solution:debt free credit clearing systems
09:14 PM on 07/26/2012
Building a successful business in an advanced capitalist economy presupposes the existence of a certain physical and institutional infrastructure that no individual could possibly provide on his or her own. There's no disputing this.
This user has chosen to opt out of the Badges program
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duey35
do the right thing for country
12:47 PM on 07/27/2012
True, but it also requires a need for the product.
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HUFFPOST SUPER USER
PotomacOracle
The Solution:debt free credit clearing systems
06:22 PM on 07/27/2012
Ya, well most successful business know their markets and the fact that they survive on the basis of sales.
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KimberlyPeacock
Renegade Innovator
08:41 PM on 07/26/2012
I read some of the comments and just want to say, Jefferson gave many the opportunity to go west and build something from nothing via the Louisiana purchase.

Both are variables in an an equation of state in regards to the economic network.
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HUFFPOST SUPER USER
KimberlyPeacock
Renegade Innovator
10:47 PM on 07/30/2012
Yes they are! Jefferson knew what he was doing.
06:45 PM on 07/26/2012
At YesIDidBuildIt.com, business owners are respectfully responding to the President’s remark; "If you’ve got a business -- you didn’t build that. Somebody else made that happen."

Created by Florida Advertising Agency Quenzel & Associates, the new website, ‘hopes to create a better understanding of what it really takes to start and run your own business, said Colleen Quenzel Founder, President & CEO of Quenzel & Associates.

Launched to support 13 local business owners representing a mix of political viewpoints, the Florida Advertising Agency decided to offer the website to all business owners that want to share Why They Started Their Own Business and How They Make Success Happen.

Now, business owners can list their business & share their pursuit of the American Dream to Own Your Own Business by simply completing the form on the Share Your Business Story section of the website.

“As an Advertising Agency, we work with business owners every week to help them grow their business. We see the hours they put in, the sacrifices they make and the things they do to make success happen,” explained Earl Quenzel, who oversees Client Strategy, Creative and Client R.O.I. for the agency.

“There's been enough 'business bashing' the last 18 months. The key to America's economic recovery lies with encouraging business owners... not demonizing them.

Business owners know that their growth depends on hiring as many of the best people they can afford. That's why jobs get created. And, the jobs they create, create more jobs,” Quenzel concluded.
04:47 PM on 07/26/2012
While the meaning of the word "that" in the referenced sentence wasn't referring to the business, that was the overall thrust of the overall speech. Here is the more disturbing portion of the speech:

"[L]ook, if you’ve been successful, you didn’t get there on your own... I’m always struck by people who think, well, it must be because I was just so smart. There are a lot of smart people out there. It must be because I worked harder than everybody else. Let me tell you something -- there are a whole bunch of hardworking people out there."

He then goes on to list all the things the government has done that have contributed to the business owner's success.

Obama's point was that business owners don't deserve credit for building their businesses; the government does. The only reason they're successful is because they were lucky enough to win life's lottery (or worse, they got there through underhanded means). After all, there are "a lot of smart" and "hardworking" people out there and most of them aren't rich businesses owners.

His whole point was that entrepreneurs don't deserve the wealth they've accumulated. He believes that government deserves the credit and therefore businesses should "give back" through higher taxes. That wealth should be redistributed back to the (equally smart and hardworking) people who paid for all of those things.

It was the usual pandering, anti-business, class-warfare, redistribution rhetoric that plays well with the audience he was speaking to.
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HUFFPOST SUPER USER
Bobby Whyaskin
Out of order comes chaos
02:12 PM on 07/27/2012
You just hear what you want to hear, but your filter is obviously clogged up. Obama never said or inferered that government deserves all the credit for a business's success or that entrepreneurs don't deserve the wealth they accumulate. What he did say and what is true, is that the government's involvement in creating the infrastructure that businesses utilize to run and benefit their businesess...they (business owners) didn't build that. They didn't have to. The government, with the tax dollars of business owners, the workers, the customers and everyone else, paid for that infrastructure. As a small business owner, I say thank you that I didn't have to build the highways that lead clients to my office doors, or create the internet that drives people to my website. If you can't understand the difference, then go plug your brain into Faux News, they have an open spot for you...in their government built infrastructure.
jgrant129
aut viam inveniam aut faciam
04:35 PM on 07/27/2012
Exactly. He's once again trying to justify why he is pushing for a 14% tax increase on those of us who EARN more than $200K! F&F
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HUFFPOST SUPER USER
Bart DePalma
Bart DePalma
04:31 PM on 07/26/2012
"I say that business and government working together for a couple of hundred years is what has lifted our country to a historically great level in world history. If America was only about individual enterprise without a strong central government, we'd be a series of fiefdoms in search of a common mission and struggling to rise to even a third-world level."

I say you need a history lesson.

Business is the production of goods and services which consumers will buy.

Infrastructure is a public good we all share (not just business) which facilitates security, transportation and sanitation.

Infrastructure is not a business. It does not produce the intellectual and financial capital nor the labor to produce goods and services.

Until recently, the only time the federal government partnered with business to produce a product of the government's choice was in the manufacture of war materials.

When Barack Obama says, "if you own a business, you didn't build that," he must be referring to his government directed and financed "clean energy economy" businesses like Solyndra.
04:18 PM on 07/26/2012
Probably? Jeesh. Ignoring the clear context is not slack. The rest of the post seems so sane too.
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Michael Sandy
08:09 PM on 07/26/2012
If you had an SAT question where the reader had to determine the main point of the speech, then pretty much the entire Republican Party would have flunked it.

Probably. ;)
04:09 PM on 07/26/2012
In every instance of this countrys expansion there were people willing to take risks and build something out of what was then a frontier...from the east coast to the west....there were businessmen and women risking it all who decided to build...a ranch...a farm....a mine...gov't came AFTER....without the private enterprise and capital wealth...gov't is an impossibility...then you had system of law....churches..schools...roads....that was the progression...and its worked fine
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tlawyer56
Level 2 Superuser
03:45 PM on 07/26/2012
Um that is a lie, that is not what he said.
HUFFPOST SUPER USER
tlawyer56
Level 2 Superuser
03:42 PM on 07/26/2012
No I think it means you are nothing without government
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Michael Sandy
08:32 PM on 07/26/2012
I see no evidence of the third word in your sentence, tlawyer. There is no connection between your claim of what Obama said and what he actually said. Please remember that people who follow this thread actually WATCHED Obama's speech. We understand grammar. We know what that "that" referred to.

And we know that Romney gave almost the exact same speech a couple of times in HIS career. Frankly I think an Olympic athlete has a far greater claim that they achieved what they did through their own efforts than a businessman.
01:51 AM on 07/27/2012
News flash - You are making way to much sense here. These people do not wish to know the truth. They live in the alternate reality of the spin cycle over at the FOX laundromat. They really shouldn't feel too bad about being duped though. The FOX spin machine is the best money can buy! Anybody that can sell a Romney has GOT to be good! Even John McCain picked Sarah "what do you read is a trick question" Palin over him. Hello!

Papa
www.papatrains.com
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tlawyer56
Level 2 Superuser
11:22 AM on 07/27/2012
I heard the speech as well that refered to the schools and the infrastucture. I am Paraphrasing here, all functions of Government
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tlawyer56
Level 2 Superuser
03:40 PM on 07/26/2012
That is the definition of socialism, and that does not occur in the US. In fact quite the opposite has occurred. Only now government is bailing out those who control the means of production, while those who control the means of production seek to control government. Read the Federalist papers and see what Madison, Jefferson and Franklin had to say about bankers. Get back to on that one ok?
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tlawyer56
Level 2 Superuser
03:34 PM on 07/26/2012
Greece does not have anywhere near the GDP of the US. In fact no country on earth does.