Who Really Builds A Business

Who Really Builds A Business?

Recently, our President made the comment that if you are an entrepreneur and own a small business, you didn't build it yourself.  He made the comment in an attempt to show the importance of infrastructure and other government services such as public schooling.  Instead, he gave us a revealing glimpse into his world-view and the role he believes our government plays in job creation and the private sector.
Mr. Obama argues that if it weren't for infrastructure like roads, rail, and ports, then private businesses would not be able to so easily transport goods and services and would therefore not exist.  He also puts forth the theory that teachers are a motivating force that spark the entrepreneurial spirit of kids that go on to become tomorrow's business owners.  I will show that Mr. Obama suffers from an inability to properly assign causality to these issues and how that effects his policy that has restrained growth while in office.
Let's start with the argument that teachers are the motivating force behind entrepreneurs and therefore the U.S. economy.  For the record, my dad is an eighth grade math teacher and I have the ultimate respect for what these public servants do on a daily basis.  However, it is a leap too far to say that teachers are the causal factor in an individual's decision to pursue a business venture of their own creation.  After all, entrepreneurs have existed long before public schooling, and many autodidacts have gone on to be fantastic titans of industry.  Andrew Carnegie did not have a teacher that showed him how to create steel and told him to use it to transform the history of our country and cities across the world.  Steve Jobs wrote to two other entrepreneurs, Hewlitt and Packard, to ask for the parts necessary to build his own computer without the poking or prodding of a teacher.  Don't get me wrong; teachers do a great deal to inspire children and young adults to pursue their dreams and expose them to dreams they may not have even thought of on their own, but they do not create entrepreneurs out of mindless drones.
Now let us move on to the idea that without infrastructure, industry would cease to exist.  Again Mr. Obama is putting the cart in front of the horse here.  Before there were ports, roads, electrical grids, or railways young enterprising men and women came to the new world for a chance to create their own destiny. Let's look at the flow of capital as further evidence of whether the government creates industry or industry supports government and infrastructure.  In order for the government to build infrastructure, they need revenue.  Where does this revenue come from?  It comes from a couple sources; individuals through the individual income tax and businesses through the corporate income tax.  If all the businesses in the U.S. were to board up their doors tomorrow and not employ a single person or sell a single good or service there would cease to be revenue for the government to function.  If the government instead were to tear up all the roads, rail, electrical grids and everything else under their complete control, businesses would adapt and continue to exist.  Would it be a difficult transition?  Yes.  Would it be the end of entrepreneurs?  No.
This doesn't even mention the fact that the government is using capital that was created and accumulated by the private sector in order to create the infrastructure that exists today.  Before the government built roads, pioneers cleared paths and used horses and other beasts of burden to transport goods.  Before airports were even dreamed of, the Wright brothers used their entrepreneurial spirit to claim the sky as their own.  The private sector has always found a way to meet demands that exist in the market, regardless of whether infrastructure existed or not.  Infrastructure and governments don't create businesses.  Businesses create the capital that allows a government to exist.
I'm a big fan of analogies so I want to give a few that I think show the error in Mr. Obama's line of thinking.  Without medicine, there would be no doctors.  Without machines, there would be no mechanics.  If it weren't for books, trees would disappear from our planet.  It doesn't work in any of these relationships, and it doesn't work the way Mr. Obama asserts no matter how loud he shouts it.
What does it mean for us that we have a President that believes the car drives the driver?  Perhaps the most obvious implication is the role the government plays in our lives.  If our leaders believe they exist only because we allow them to and they thrive because of our success, then individual freedoms, property rights, contract law and all the other necessities of a successful free market are protected.  When we have a President like our current one, we see things like the auto sector failed bailout where contract law is completely nullified in order to serve the interests of a particular group that helped the President gain office.  We see things like the individual mandate where the government says they know what's best for you much like a parent would for a three year old.  We see things like Solyndra where resources are taken from the free market and given to a special interest group that tries to create a product that isn't technologically efficable at a price that the free market wouldn't support.  Perhaps Solyndra would still be in business if every home owner with electricity was required to buy their product.
The issue isn't that Solyndra failed, it is that it failed with money that was given to them unilaterally by a government that took the money from those who created it in the first place.  The issue is that our President believes this is how advances are made in the private sector - only with the help of government subsidies and handouts will businesses succeed.  Only by taxing businesses in order to build more infrastructure will businesses be able to generate larger profits.  Only by exerting more goverment control will we all be free to prosper.
In four months we will choose who our President will be for the next four years.  We will also be selecting our congressmen and senators.  Perhaps more importantly, we will tell our government officials who we think we are and who they are in the causal relationship of society and government.  Do we believe we are subjects that exist because of the benevolence of the ruling government, or do believe that we are sovereign individuals who work, toil, sweat, and bleed to create a better life for ourselves and those we will leave behind and the government exists only because we say it does.