Carol Roth - August 15

Carol Roth - August 15

General notes:

Announce podcast subscribe at the middle of the show (everyone asks for 5-star reviews, but I think you should just ask for honest feedback)


Government picked winners and losers with essential and nonessential businesses.
Whenever onerous regulations are introduced to punish the big guys, it ends up hurting the small guys more. The big players are able to afford the lawyers needed to stay in compliance.


Carol Roth is a content creator, “recovering” investment banker, author of The War on Small Business, entrepreneur, TV pundit and host, and New York Times bestselling author of The Entrepreneur Equation.

She has worked in a variety of capacities across industries, including currently as an outsourced CCO, as a director on public and private company boards and as a strategic advisor. She advocates for small business, small government and big hair.

Carol can currently be seen weekly on a variety of networks and shows. Her multimedia commentary covers big and small business and the economy, current events, politics and pop culture topics. She hosts the podcast The Roth Effect and was formerly a radio host on WGN in Chicago. Her avid defense of capitalism, free markets and reason finds her op-eds published in a variety of outlets. Carol has also been seen weekly on a variety of national television outlets over the years including Fox Business, CNN, HBO, Fox News and MSNBC. She has also appeared in several financial/economic documentaries, including one about the auto bailouts.

Ms. Roth holds a B.S. Degree from the Wharton School of Business at the University of Pennsylvania where she graduated Magna Cum Laude. To supplement her active media participation, Carol has completed media and improv training with The Second City, the leading improvisational comedy school in the US.



2020 was a bad year for small business. Government waged war on the entrepreneur in the name of public safety – imposing harsh lockdowns on those deemed "unessential." Carol Roth, author of a new book "The War on Small Business: How the Government Used the Pandemic to Crush Small Business," makes an important observation that large corporations tended to be exempt from the lockdowns. Isn't that funny!

Roth is a content creator, “recovering” investment banker, entrepreneur, TV pundit and host, and New York Times bestselling author. With 300+ pages of evidence, her new books makes the case that the government has been treating the little guy unfairly since long before COVID. However, the pandemic provided a perfect excuse to ramp up its preferential treatment of privileged cronies at corporations.

Can we even call this capitalism anymore?

Read the book and listen live, this Sunday at 8am PACIFIC.

Links & Summary

Jon Miltimore, July 14, 2021

Good, short read - interview by Jon Miltimore (past guest)


ROTH: I’d written a book ten years ago called The Entrepreneur Equation. It was about all of the risks you take on as a small business owner and how difficult it is to be a small business owner. So I was highly aware of the plight of the small business owner. Little did I realize that the government shutting them down and taking away their business by mandate while leaving their big competitors open was actually their number one risk.

The CARES Act included many handouts to the already privileged, i.e., $25 million to the Kennedy Center for "deep cleaning." They furloughed their staff anyway.

The Federal Reserve's injections of liquidity also helped insiders

Tom Fairless, August 1, 2021

"The Biden administration is pushing new policies aimed at promoting competition in the U.S. economy, warning that fewer large players are controlling more of the market. The European Union’s powerful antitrust regulator is re-evaluating how it polices the digital economy."

One of the points in Roth's book is that regulation to punish the big players always backfires and gives them a bigger share of the economy.

Karol Markowicz, July 27, 2021
We’re in a frenzy — again. And small businesses are poised to suffer for our panic — again.
The hysteria has consequences. Laptop-class workers don’t suffer, of course, as big tech firms delay reopening their offices. But all the small businesses that support the big businesses in Silicon Alley suffer. … The pajama-wearers, as I’ve written in these pages, can always type away from their couches. They collect their checks, feeling superior for having fought the pandemic just by staying home. They love to conspicuously obey the latest public-health directives, however irrational, and they can afford to do so.
In her book “The War on Small Business,” Carol Roth lays out the sustained attack small businesses have endured over the pandemic. It’s a terrifying story. If we had wanted to destroy small businesses while shoring up big corporations, it’s unclear what we would have done differently. Roth writes that by fall 2020, “34 percent of small businesses that hadn’t yet closed couldn’t pay their October rent. Meanwhile, many of the biggest US businesses were getting larger.”
“We’re all in this together” went the COVID mantra, remember? Prove it.
Dani Romero, July 10, 2021
July 5, 2021
David J. Lynch, June 23, 2020

"Zombie" companies are sucking up resources due to cheap cost of credit:

Years of ultralow interest rates intended to stimulate the economy after each of three 21st-century recessions created the conditions for zombies to proliferate, according to economists. Since the pandemic sideswiped the U.S. economy in March, the Federal Reserve has again lowered borrowing costs to near zero and further eased credit conditions by purchasing corporate bonds. The Fed’s actions have drawn widespread support as an antidote to the pandemic-inspired economic collapse. Making it easier for companies to obtain financing should prevent countless business failures and millions of additional job losses, economists said. But that short-term success may breed long-term weakness, sapping productivity, investment and the economy’s competitive fire once the crisis passes

Some companies should probably be liquidated like AMC Theaters and JC Penny but they're being propped up by cheap creot:

“Almost no one would say let firms go bankrupt left, right and center. That’s not reasonable,” said Viral Acharya, former deputy governor of India’s central bank. “But society needs a reallocation of resources to other sectors.”
Madeline Wells, July 28, 2021

The disruption to supply chains and hardships on small businesses - especially restaurants – are lingering.

Videos & Podcasts

August 7, 2021

Glenn Beck show.

We didn't have a true lockdown - we had a partial lockdown as "nonessential businesses."

Small business accounts for 75% of job growth during recession. Half the economy is in the hands of small business (30.2 million businesses). The other half is in medium to big business (10,000 businesses).

Companies like Amazon had record profits.

Monetary Policy: The Fed decided to intervene in the market, injecting trillions in cash from out of nowhere, to buy securities. Big companies with access to capital already did very well. Many IPOs and SPACs.

Whenever onerous regulations are introduced to punish the big guys, it ends up hurting the small guys more. The big players are able to afford the lawyers needed to stay in compliance.

June 30, 2021

Jason Stapleton interviews Roth.

Roth describes the Fed-mediated transfer of wealth to the already wealthy.

Big chains have wherewithal to wait out the labor shortage, cope with higher minimum wage, etc.

July 29, 2021

Good book summary by Roth herself.

Roth has a vendetta against the student loan scam, because she graduated with a mountain of debt

My book, The War on Small Business focuses on the tilting of the playing field towards big business and away from small businesses. Over the past several decades we see time and again big businesses being favored over small businesses by regulators and government agencies. All of this came to a head last year during the height of COVID when the government picked winners and losers, not based on science but based on political clout and connections. That left the small businesses underrepresented and frankly out of luck which resulted in many small businesses closing their doors for good.
July 1, 2021

Dana Loesch interviews Carol Roth - concise (13 minute) interview.

Government picked winners and losers with essential and nonessential business.

Government gives stimulus payments, but takes $1 for every $0.75 they give out.

What's Blackrock doing?

Blackrock is buying up houses with cheap credit. They are looking for yield, and are now looking to the housing markets to invest money that they are getting from the Fed basically for free. This is distorting the economy and making it harder for average Americans to build wealth. Housing prices are bid up, and those without access to capital can't earn a return on their money.


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