Posted on 12/13/2008 8:50:55 AM PST by SeekAndFind
When the jobs report for November came out last week, many so-called "experts" were shocked at the massive loss of an estimated 533 thousand jobs. Even a Time /CNN organization called "The Curious Capitalists" were at a loss to explain it.
Let me attempt to help out these "curious capitalists" (though I am still skeptical that anyone working for CNN or Time is either curious or a capitalist). I caused part of this job loss and I know precisely why; the election. The results portend big trouble for small business.
The job destruction process has started. We are about 20% of the way through our ramp down process and on schedule to complete the shut down by spring 2009. Watch the financial news and you will see continued job cuts each month. We are not alone in our strategy. Far from it. Atlas has shrugged all over the country.
Like many business owners, we are no longer willing to take all of the financial and legal risks and put up with all of the aggravation of owning and running a business. Not with the prospects of even higher taxes, more regulation, more litigation and more emboldened bureaucrats on the horizon. Like others we know, we are getting out while the getting is, well, tolerable. Many who aren't getting out are scaling back.
We learned just this week that getting out of business is harder than we thought. Take Republic Windows & Doors of Chicago, where being out of money and out of paying customers apparently does not give a business the right to shut down. Nor does it give that business' bank the right to withhold credit. According to the unions, Jesse Jackson and the Governor of Illinois (yes, THAT governor), this company must continue to pay its employees salaries and benefits.
But pay them with WHAT? Liberals seem to be clueless as to where "the money" comes from. They love to tax, regulate and redistribute wealth -- all the while decrying the very profit motive that created it -- something they do not understand. If they did, they would not naively insist that a business that is out of money, out of customers and out of credit stay open so as to pay employees.
And that is but one example of why the lay-offs of November 2008 - which will be part of George W. Bush's statistical record - fall in reality on the Obama election. Business owners understand that the election of 2008 just gave a lot more power to people who think like these liberals in Illinois. For crying out loud, an Illinois liberal is now "President elect" and he chose another one for his Chief of Staff. He chose Michigan liberals for his economic team. Illinois and Michigan are broke!
It is no secret that owners circulated endless emails leading up to election day discussing lay off plans were Obama to win. Entrepreneurs instinctively understand the danger posed by larger liberal majorities in power. The risk-reward equation and fierce independence spirit of start up businesses are anathema to the class warfare, equality of outcome and spread the wealth mentality of the left.
We have very little appetite to have our lives run by elected or un-elected officials like Barney Frank and Jamie Gorelick. We have no appetite to be taxed even more by the likes of Charlie Rangel. These clowns destroyed Fannie Mae, Freddie Mac and our entire economy as a result. Congress, by their own admission, cannot even run their own damned dining room with a captive customer base! Some of them refuse to pay their own tax burden. Why in the world would we subject ourselves to their ilk armed with the unchecked powers of the Oval Office and both houses of congress and a massive army of bureaucrats?
We got into business to be independent. We will get out for the same reason.
The fact that Obama is not in office yet is irrelevant. Businesses must see "around the corner" and plan accordingly. Rightly or wrongly, business owners see a huge anti-business shift in motion and they are making preparations NOW. We do not want to have business illiterates like Chris Dodd dictate our decisions from the comfort of his home made possible by a quid pro quo Countrywide mortgage.
(As the owners of Republic Windows are finding out, government will nose their way into your business even if you are not thriving.)
Most of the kind of people who start and run businesses are by definition trying to opt out of depending on anyone else -- be it a large corporation or government -- for their welfare. We take on tremendous risks and responsibilities. We do so expecting a better than average return. Since we require nothing from government, most of us deeply resent and resist being pestered by government.
For nearly 30 years, I have been one of these business people. It was an amazing journey and literally involved blood, sweat and tears. But now I am done. This election screams that we are going to see a deterioration of the risk-reward equation and the ability to be left alone. Apparently, any appreciation of our crucial place in the economy is lost on over 50% of the voters as well as those they elected.
So, like many business owners, I will "stay home" so to speak. Others more brave than I are opting to try and stay in business by cutting way back on purchases and payroll. They have already started. They are not waiting for the little sign on Obama's lectern to be updated to the official Presidential seal. November 2008 job losses belong to "The Office of the President Elect." I know. I caused some of them, and I know why.
You sell bombs?
And I should also add that there are LOTS of benefits to business ownership. Its not a one way street where business just gives to the Government. Lots of businesses, especially small ones, get lots back in terms of tax breaks, credits, low interest loans, etc. Most states do a lot to encourage small business.
And, business owners make both salary and profits. Its also nice to be the one in charge. It it extra work and more responsibility—sure. But if you don’t like it, do something else.
Now would be a good time to observe who has 0bama stickers on their cars...
Maybe I’ll go to law school and specialize in bankruptcy law. Looks like it’s going to be a growth industry.
No. Not a bad idea, though...
;^P
Unfair to the real King Hussein (of Jordan that is). He was not a bad guy and neither is is son.
If antbody ever makes a “must read” ping list this thread is a great candidate for it.
Stick with the biological weapons. Doing a booming business in Zimbabwe. Let ‘em blame it on the Brits. could be bloating on the largess. Not that is bugs me. Anyone for a slay ride? :-)
I recall a political ad in which Ron Howard was truly insulting of us who were "afraid" of "change".
Liberals and socialists just never see that once earnings are confiscated, there is no more incentive to earn another farthing.
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>>>I am also a small business owner, and my partners and I have already laid out a plan to adapt to the probable cost increases coming down the pipe...and it WILL involve firing some employees.<<<<
As am I. We will cut staff by at least 10% , RAISE prices ,and cut costs in every way we can to survive.
Wow...So many conspiracies here, and so little time! First check for subliminal messages: “will be part of George W. Bush’s statistical record -” check! That shows the leaning of the authors, regardless of ‘conclusions’! Now for the omitted facts: The Pension Relief Act of 2006 is not mentioned in the article as a core basis for layoffs in the 4th quarter of 2008!!! On January 1, 2009, the Pension Relief Act of 2006 takes effect! The Law’s bottom line: 90% (or thereabouts) of Pension funds MUST be funded by that date for all employees! Lotsa ways to get to 90%! just layoff ‘til the math works! All part of the 2006 Democrat Congress ‘2008 Designer Recession’ to make sure the Dems stayed in power in 2008. Ever wonder why so many Dems were saying all year long that “We’re already in a recession”...and why they all to a man ‘shut-up’ after Nov. 4?...or why it all seemed to ‘come to a head’ on Oct. 1, 2008 when the stock market took the ‘swan dive’ that became the greatest crash since the Great Depression. Like many problems in today’s economy....just look to Congress for the answer...again!
Parliament of dunces ping! An excellent analysis of the current economic meltdown....
PING and share with your address book. Spread the truth.
I respectfully disagree with your interpretation. He goes on to explain that it is really Obama's policies at fault.
Perhaps he should have used a semicolon instead of a period between these two thoughts. He is saying in so many words, "It may look like Bush's fault, and people will blame him; but it's really about Obama's socialist ideology."
All I see are people suddenly being tapped on the shoulder and being asked to leave on the same day without the company being prosecuted at all.
As well as it should be. There’s no Constitutional requirement that employers provide lifetime employment, health insurance, minimum wages or any other benefits. The only thing an employer owes an employee is what the employee agreed to work for for work performed. Smart employers will reward valued employees to keep them, and smart employees will find ways to remain valued by their employers. Nobody owes you a living. The sooner everyone accepts that and gets over it the quicker we will get through what would be a minor downturn in the economy. The more the Government tries to fix things, the worse it will become, and the longer the misery will last.
My daughter was laid off yesterday.Everyone except 2 people got the axe.
YEP. Been saying for a long time, unions are nothing but legal La Cosa Nostra.
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