Economy Getting Better?

[ultrarunner]

I think the economy, as measured by GDP & wall street, is getting better. That is good for folks who have money invested, and for pension funds. It isn't doing much for unemployment, because a lot of employment is with our multinationals, and they aren't adding many employees here. A lot of noise is made about small business, but the reality is that small business jobs usually aren't very good jobs. Low pay, few benefits and little chance of advancement are the norm. I grew up in a small business, and currently help my wife with her biz. There is a lot of myth and fantasy about small business, but IMHO, they are never going to provide the middle class jobs that folks need.

When I think of small business... I think of individuals self-employed running their own small business...

The one truck plumbing company, electrician, cement finisher, builder, farmer, accountant, shop keeper, diner, delivery service, landscaper, trucking, etc...

It truly is unbelievable the obstacles that must be overcome to be legit... at least in my neck of the woods.

A lot of media coverage was on a former homeless individual that shines shows to support himself... he has a shoe shine box, lives in studio apartment and pays taxes... shines shoes of some of San Francisco's most influential people.

Under penalty of law... he was told he could no longer shine shoes without a permit, license, insurance, hazmat plan, proper storage of chemicals, etc...

The public outrage was enough for the city to modify some of it's rules... he can now legally shine shoes... incredible.

My Grandfather and Step-grandfather both started their own businesses because no one was hiring in the Depression... they had no choice if they wanted to survive...

The process has just become too complicated and costly...

Need a business license just to rent a room in my home, annual registration fee to the rent board, city business tax of nearly 1.8% of Gross Receipts and submit to inspections if selected... also tax return must be available to the city...

The barriers to hiring employees must be reduced as must the cost of compliance.

Maybe we need a "Right to Work" statute similar to the "Right to Farm"

 

[scott_vt]

. I hear squirrel meat isn't too bad ...

Good Afternoon Baby Grand,
Hmmm, in that case I should be eating quite well, dont know about the wife though, she may starve when she finds out what Im eating !!!

 

[Heavyduty]

It is all disheartening If we knew everything , not just the 1% they let us know , we couldn't sleep at night :ashamed: We have been a nation use to doing financially better than the generation before us , I'm concerned that philosophy ia about over with

Yeah, sure is. I'm waiting for inflation to hit us next.

I remember taking a few business classes in college and increasing stock prices (at all cost) was the way of the world. If you moved jobs to another country, it didn't matter, as long as stock prices increased. Now we can't afford the cheaper things being made in china because we have no jobs to make money. I hope we learn from the past, that the greed for the mighty dollar (at all cost) has turned around and bit us in the arse.

 

[ultrarunner]

It is all disheartening If we knew everything , not just the 1% they let us know , we couldn't sleep at night :ashamed: We have been a nation use to doing financially better than the generation before us , I'm concerned that philosophy ia about over with

Some have been doing really well...

Paper ran a story yesterday of the average public service pension in my county for 30 years of service, retired last year and it is $85,000.

In addition, it said that 65% were also Social Security eligible for an average of 18K additional...

Some are doing really well.

By the way, the adjacent county was $83,000

Dad always advised by us to work for the Government... he was a wise man.

 

[Transit]

That is interesting. I understand that the medium income in the US is about $40-45 k / yr. while some are doing better than others the real income has not changed and you cannot equate incomes in different areas because of the overhead imposed by the local cost of living. A door man in NYC makes $65 k. that may have the same buying power as 30k in the back hills of Tennessee.

 

[ultrarunner]

That is interesting. I understand that the medium income in the US is about $40-45 k / yr. while some are doing better than others the real income has not changed and you cannot equate incomes in different areas because of the overhead imposed by the local cost of living. A door man in NYC makes $65 k. that may have the same buying power as 30k in the back hills of Tennessee.

I would think the two biggest variables location dependant are cost of housing and tax burden...

Many retirees from CA take their government pensions to lower cost of living States...

The State unsuccessfully tried to collect income tax on CA derived pensions for years on those no longer CA residents...

As too the original question... I would not say the Economy is getting better... only that it has stabilized somewhat...

Very few if any are hiring...

 

[EddieWalker]

Understand that by "fantasy" I meant the impression I got from your post (as well as a bunch of others) that all we have to do is reduce taxes and move a shrunken government aside, then businesses will flock back to our shores, our economy and quality of life will soar, the rising tide will raise all boats equally, and America will dominate the world economically for another century. I consider that fantasy.

If I read your post incorrectly, then my bad, and we do agree on everything...

You read it correctly. It's just the part about calling it a fantasy that I take offence too.

I do believe that if we reduce the size of the government, that will take care of the debt problem that they are createing. Government is the largest employer in the country, but generates zero income. To afford itself, it is in business to take everyone elses money and call it a tax. In my fantasy world, I want to see politicians that do not "take" money from those who earn it so they can spend it to support their lifestyle and groups that keep them employed. This goes from the top all the way down to the local city council.

If companies didn't have to pay as high a tax burdon, then it would be more appealing to them to build their products here in the US. While they can do it cheaper in Mexico, Malaysia and India, it's also a pain for them to deal with the problems of those countries. It's cheaper for them to do so, but it's not ideal or desireable.

There is no reason to over complicate it or to point fingers. Identify the problem and change it. Right now, they fabricate a problem, complicate it and make things ten times worse. Explain Health Care Reform and explain how that will solve anything?

Eddie

 

[CurlyDave]

...The cards are definitely stacked against anyone trying to legitimately start a business... at least a dozen different agency approvals for a cabinet shop... almost like signing a blank check with no guarantee...

The odd part is much of the red-tape didn't even exist 25 years ago...

I am not even trying to start a business. 2+ years ago, my house burned down and after fighting the insurance company for a "reasonable" settlement, I have been acting as an owner-builder. Not a big time thing, but I employ four people at about an 80% level to help me in rebuilding.

Incredible bureaucracy at every turn. Roadblock after roadblock.

Here we are in a nasty recession and the government is bound and determined to make me lay these guys off.

Just one small example. The State insists that I have workmen's comp insurance. In CA it is so hard to get that the State set up an insurance company, with lots of government bureaucracy and inefficiency to provide it.

So, I sign up for it in October of 2009. Come July of 2010, I get a letter that the policy will be renewed. Come October no renewal. I call and ask, and they deny all knowledge of the letter from July -- I am holding it in my hand while I am on the phone and they are telling me they never sent it. Then I get a letter that they are canceling my policy. Why? They want to audit me. No new policy until I get an audit. I explain there are four jobs on the line. No dice. Next audit is in 3 weeks.

Eventually, after spending days jumping through their hoops, I get a new policy.

The State of CA is a job-killing machine.

 

[ultrarunner]

I am not even trying to start a business. 2+ years ago, my house burned down and after fighting the insurance company for a "reasonable" settlement, I have been acting as an owner-builder. Not a big time thing, but I employ four people at about an 80% level to help me in rebuilding.

Incredible bureaucracy at every turn. Roadblock after roadblock.

Here we are in a nasty recession and the government is bound and determined to make me lay these guys off.

Just one small example. The State insists that I have workmen's comp insurance. In CA it is so hard to get that the State set up an insurance company, with lots of government bureaucracy and inefficiency to provide it.

So, I sign up for it in October of 2009. Come July of 2010, I get a letter that the policy will be renewed. Come October no renewal. I call and ask, and they deny all knowledge of the letter from July -- I am holding it in my hand while I am on the phone and they are telling me they never sent it. Then I get a letter that they are canceling my policy. Why? They want to audit me. No new policy until I get an audit. I explain there are four jobs on the line. No dice. Next audit is in 3 weeks.

Eventually, after spending days jumping through their hoops, I get a new policy.

The State of CA is a job-killing machine.

I believe a lot of the problem is caused by well meaning (Benefit of the doubt) that have no idea the cost of compliance and the burden it places on anyone trying to build and manufacture something... the burden is a little less in other areas...

It's like the straw that broke the camel's back... it keeps piling on to a point where it no longer is viable to continue.

As long as there are options... business will continue to seek them... whether it is in another State or County.

The family business has been at the same location since 1942... to be in business requires a Bond posted with the State. My uncle get a letter from Consumer Affairs for failing to furnish Bond and to cease all business.

He ignores it because he renewed the Bond for 3 years and has proof it is in force... he is running a one man company at age 75... one of the reasons it is now a one man company is because having employee's would no longer make the business viable at any level... at one time it supported 4 families and had several full time employees

Anyway, a 20 something inspector comes out to document that he is now in violation for operating a business without Bond... the lady tells him he is subject to severe penalties... he escorts her off the premises telling her not to trespass. He's reached the age in life where things that would have me worried and sleepless are no big deal...

So he gets a certified letter to appear at a hearing and decides to go... he tells the commissioner that Consumer Affairs has too many people on the payroll that don't know the **** from a hole in the ground... gets every one's attention.

Then the inspector testifies and states my Uncle was very uncooperative and wouldn't let her do her job... Uncle pulls out his Bond with acknowledgement from agency and asks why they hire people that can't read... case dismissed.

It would be comical if it wasn't an all too common occurrence.

I'm aware of many small businesses that no longer have employee's because the cost of compliance is too great... more jobs lost.

 

[300UGUY]

You read it correctly. It's just the part about calling it a fantasy that I take offence too.

I do believe that if we reduce the size of the government, that will take care of the debt problem that they are createing. Government is the largest employer in the country, but generates zero income. To afford itself, it is in business to take everyone elses money and call it a tax. In my fantasy world, I want to see politicians that do not "take" money from those who earn it so they can spend it to support their lifestyle and groups that keep them employed. This goes from the top all the way down to the local city council.

If companies didn't have to pay as high a tax burdon, then it would be more appealing to them to build their products here in the US. While they can do it cheaper in Mexico, Malaysia and India, it's also a pain for them to deal with the problems of those countries. It's cheaper for them to do so, but it's not ideal or desireable.

There is no reason to over complicate it or to point fingers. Identify the problem and change it. Right now, they fabricate a problem, complicate it and make things ten times worse. Explain Health Care Reform and explain how that will solve anything?

Eddie

Nothing, nothing, beats cheap labor. You could eliminate everything else you want to, and it (IMHO) wouldn't matter. There is never going to be a return of the jobs gone offshore. We simply don't have a comparitive advantage in most manufacturing.