There are straw-man arguments, and then there are piles of straw.
Barack Obama’s characterization of conservatives’ attitude toward entrepreneurial success is among the latter.
Last Friday, Obama spoke on the subject of entrepreneurial success to swooning supporters in Roanoke, Virginia. This is what he had to say:
If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business — you didn’t build that. Somebody else made that happen.
Okay, so, what’s the point? Why the pressing need to humble successful Americans? What’s the public policy implication of determining who is really responsible for people’s successes? There must be a message in there somewhere.
Obama’s message is this: successful entrepreneurs don’t pay for anything. And more specifically, conservatives don’t want them to pay for anything.
Straw-man arguments at least sound like real arguments. They at least have two pseudo-legs on which to stand, however flimsy they may be. But this pile of straw makes Ray Bolger’s character in The Wizard of Oz look like the Incredible Hulk.
First, credit where credit is due: people do indeed rely on goods and services provided by others. Congratulations, Mr. President; you’ve completed your first economics lesson. That’s what an economy is — people doing things for each other in exchange for agreed compensation.
But Obama implies that the agreed compensation part doesn’t exist, at least when it comes to successful entrepreneurs. And he implies that conservatives want it that way. As shocking as it may sound to Obama and his supporters, successful people do pay for things. They pay the contractors who build their factories, they pay the engineers who design their machinery, and they even pay the people who make their lunch.
Tellingly, Obama doesn’t speak of the private individuals who have enabled successful people to thrive. To him, America’s ungrateful entrepreneurs’ only indebtedness is to the government. Does he think private entities are un- or under-compensated for their contributions? Who knows? He doesn’t seem to care about that. But by George, the rich won’t get away with not paying their share to the government. Not on his watch.
And that’s where the deception comes in. As part of his shtick, Obama proclaims that successful entrepreneurs would not have gotten where they are without all the roads, bridges, and teachers “somebody” paid for. True enough. But who’s the “somebody”? Do businesses and business owners not pay taxes? Are they not part of the “somebody”?
Obama’s choice of language is deliberate: it engenders the societal division and jealousy that are essential to his re-election. It’s politics of the worst sort — the “us versus them” sort. And all this is based on a false premise. The fact is that successful people do pay taxes in America. And they pay more than their fair share of them.