Government Doesn't Understand Job Creation: Mark Cuban
Businessman, entrepreneur and sports franchise owner Mark Cuban says even though the American spirit is alive and well, the government "doesn't understand job creation at all and that is a real problem."
After appearing on The Strategy Session today, Cuban said in a follow-up interview that lending more to small businesses and start-ups is the "worst thing you can do." He added, "it should be the exact opposite."
The government should create and encourage equity opportunities because advancements in technology make it "a lot less expensive to get in the game," Cuban said.
About Goldman Sachs, Cuban said if he was at the helm of Goldman right now, the first thing would be to figure out what type of business the firm wants to be for the long run, and second how that "relates to the shareholders."
According to Cuban, if Goldman still managed his money today, they would "throw all their structured products at me, but that is just a sales pitch."
Goldman "was a partnership when I dealt with them and it was their money. Now, they're playing with house money; they used to have to coddle guys like me," he said. But quickly added, "I don’t think that is something unique to Goldman, I think that’s industry wide."
Cuban also said recent college graduates trying to enter the workforce in this unsettling economic climate have to think of themselves as a "free agent," like in basketball. "Maybe you have to play in the D league, maybe you have to play overseas, maybe you have to play in a job that’s not great," he said.
Cuban's Seven College Graduate Rules:
- Take any job that pays the bills
- Take jobs you think you can learn from
- Recognize you don’t have to have the final answer right off the bat
- Buy a cheap car
- Don’t buy a house
- Just live cheap, live like a student
- Don’t use a credit card at all
"Every job I had, even the jobs I got fired from, I looked at it as getting paid to learn," he said.
And what about his team in 2011? Cuban replied, "We are undefeated going into next season…"
"The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.