One Small Businessman Is Unpersuaded

Our company used to employ nine US employees.

Yes, we are that small.  We now employ only two in the US.

The other jobs went overseas – the highest paying jobs, I might add.  Our programming went overseas first: $18/hour programmers in China, India, Mexico and the Pac Rim can deliver the same quality software as a $70/hour programmer in the US.  Then we sent the tax preparation ‘overseas’ (Canada).  Then we sent the accounting overseas (China again).   We pay for all these services now with a simple credit card or Paypal transaction.  We avoid the personnel and reporting expenses.  No W2s, W4s, and no 1099s.   No insurance costs.  No compliance costs.   Our ‘HR” operation (and costs) simply evaporated into nothing when we sent the accounting offshore.

We have already moved our corporate domicile out of California (big, big savings) and are seriously examining moving it outside the US entirely (‘offshoring’ as they call it – another form of GALTing).

Personally, I found Obama’s sudden love affair with small business last night rather disingenuous and insulting.  Every job he mentioned supporting last night was a public sector job.

He offered me a ‘tax credit’ to hire here in the US, but that seemed disingenuous: why should I pay a given tax, pay for all the accounting and legal advice, then fill out additional paperwork to receive the ‘tax credit’?  And undertake all the HR responsibilities and over-regulation to get this ‘tax credit’?   Thanks all the same – if I hire more, I’ll hire offshore.  Thank you, Internet and thank you, Credit card.

The very idea of offering a ‘tax credit’ proves that he does not understand the problem.  A ‘tax credit’ suggests that at some point the tax is assessable, payable and due.    Then you can fill out some addtional paperwork and get your ‘credit’.  I object to the tax in the first place.

Obama may feel that he can enslave the economically productive in this country and redistribute the wealth in his efforts towards economic and social justice.

But governments have borders and frontiers.

The economically productive in other countries are arranging their own economic justice by being economically productive, not waiting for their governments to hand it to them.  And they have the Internet to offer their services anywhere in the world.

That’s economic justice too, of the valid variety – it’s called opportunity.

Economically productive services and money move past geographic frontiers as if they do not exist.

Millions of small businesspeople recognize this.  Look at the success and growth of companies like oDesk.com who facilitate finding workers of all varieties offhshore.  Small businesspeople – those small enough to fly way under Obama’s business radar are discovering they can contract many highly essential business services offshore to preserve the few jobs that must remain on US soil.  Otherwise, they’d already be out of business.

Obama may have persuaded the likes of Pelosi and McCain that he can get US business on his side last night, but to many of us who run real businesses, he simply declared his ignorance and continued hostility to all businesses large and small.

In short, he continues to be clueless.

The economic activity in our country over the next few months will reveal the truth of this.

Our Department of Agriculture likes to brag that ‘we feed the world’ – they have no idea just how true that statement is!