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Does Obama understand Supply and Demand?

When asked how his “bold agenda” might get interpreted by small business owners worried about government changes in health insurance and energy might impact their business.
OBAMA: Yes, the small businesses that I talk to — and I’ve been talking to a lot of them as I’ve been traveling around the country over the last several months — their biggest problem is right now they can’t get credit out of their banks, so they’re uncertain about that. And they’re still uncertain about orders. You know, do they just have enough customers to justify them doing more? It’s looking better at this point, but that’s not the rationale for people saying, “I’m not hiring.” Let me put it this way. Most small businesses, right now — if they’ve got enough customers to make a profit and they can get the bank loans required to boost their payroll, boost their inventory and sell to the customers, they will do so, OK?

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Anonymous

Asked by Anonymous at 9:16 AM on Feb. 11, 2010 in Politics & Current Events

Answers (34)
  • What is Obama talking about? He totally avoided the question. Does he not get it? Businesses use loans to bridge gaps between purchasing inventory and sales, and to ensure continuity of payroll in some instances, they don’t buy extra inventory and hire extra people unless they know that the demand will meet the supply. Given the state of the economy, no sane businessman would take out bank loans to expand inventory and personnel without having made certain that those costs will get recouped in the short term. With all the hopey changey bills proposed that will impact small businesses drastically, who is Obama trying to fool?
    Anonymous

    Answer by Anonymous at 9:18 AM on Feb. 11, 2010

  • who is Obama trying to fool?
    ---------------------
    the same people he fooled for the 16 months prior to Nov 4, 2008.
    jewjewbee

    Answer by jewjewbee at 9:21 AM on Feb. 11, 2010

  • He has NEVER worked in the private sector or owned a business...therefore he has NO IDEA how to run a country! And more than 90% of his cabinet has NEVER worked in the private sector--and yet people voted for these morons to work on getting us out of a major recession?!


    Chart claiming to be from J. P. Morgan, hoaxing experience of Obama cabinet, underestimating by 7 times

    LoriKeet

    Answer by LoriKeet at 9:24 AM on Feb. 11, 2010

  • Given the state of the economy, no sane businessman would take out bank loans to expand inventory and personnel without having made certain that those costs will get recouped in the short term.


    This is the problem when you have a President that has never had a job in the private sector.  He simply doesn't understand how small businesses operate and the risks they are willing or not willing to take. 

    QuinnMae

    Answer by QuinnMae at 9:24 AM on Feb. 11, 2010

  • Op here. Forgot the link. I don't know how to make it clickable.
    http://blogs.abcnews.com/politicalpunch/2010/02/todays-qs-for-os-wh.html
    Anonymous

    Answer by Anonymous at 9:24 AM on Feb. 11, 2010

  • lol jewjewbee.
    Carpy

    Answer by Carpy at 9:25 AM on Feb. 11, 2010

  • This is why, from a business stand point Obama is setting himself up for epic fail. In his entire “professional life”, the only business model Obama has dealt with?public sector. What business model does not need to worry about making a profit? GOVERNMENT ..What business model borrows money at the cost of other people (ie: taxes) and has no accountability or responsibility to show a profit or even break even? GOVERNMENT. Obama is trying to force Big Government philosophy onto small businesses. Scary how Obama is incompetent , inexperienced, and ignorant to the world of business.

    grlygrlz2

    Answer by grlygrlz2 at 9:32 AM on Feb. 11, 2010

  • OK I can see a business owner taking a loan to boost payroll if he was on the verge of shutting down and needed time to make things happen. A short amount of time not as an ongoing thing because they know they have to pay it back. I have heard Obama say this before. I'm not a business owner but I know I would not take out a loan to pay my workers as a practice.
    Personally I have not had a problem getting credit at all but I see banks being very careful to who they do loan to. If you have a business that needs a loan today and doesn't have a specific reason you have to look at the health of their business. If it is not so good they may not get that loan because it very well could be prolonging the inevitable.
    The Dems refuse to believe that people are saving more and spending less as a practice. I think it is for the most part a life choice they intend to keep. Businesses are failing for that reason and no other.
    itsmesteph11

    Answer by itsmesteph11 at 9:36 AM on Feb. 11, 2010

  • ya know, i tend to get off track a little bit, i guess my mind just works that way. i like to figure things out in a manner of "why" is this or that so. it just seemed obvious to me. People do what works for them, People continue to do what gets them what they want or need until it simply doesn't work anymore. Why does Obama continue to evade, deflect and point the finger at other reasons or sources for problems, Because it worked for him in the past, it's continuing to work for him now, and he has a pretty good indication it will work for him in the future.
    Did anyone call him out immediately on this answer he gave? If not, then it worked for him, he got his way
    People don't give him enough credit, IMO, for what he does and how he carefully calculates. If you don't think Obama already knows what questions will be asked, and exactly how he'll answer, you are kiddin yourself.
    jewjewbee

    Answer by jewjewbee at 9:42 AM on Feb. 11, 2010

  • In answer to the question, Yes he does understand the law of supply and demand. But his target right now is jobs and you have to remember that he will NEVER take responsibility for rising unemployment. Pointing the finger at small business and banks making them the reason nobody is hiring is politics. Obama knows exactly how his Bold Agenda will get interpreted, but right now he has to deflect unemployment causes on someone other than himself. Deflect and Blame while he pretends to concentrate on jobs until Nov of 2010. Then it's just vacation time.
    jewjewbee

    Answer by jewjewbee at 9:57 AM on Feb. 11, 2010

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