Skip to comments.Female Small Business Owner Forced to Fire 800 Employees, Says She'll Fold If Obama Reelected
Posted on 06/18/2012 7:29:44 PM PDT by Kaslin
RUSH: Okay, from Breitbart: "23% of Small Business Owners Went a Year Without Pay -- Barack Obama has said the private sector is doing fine. Tell that to small business owners; a new survey by Citigroup shows that 23% of small business owners have gone more than a year without pay. The study also says that 54% of them have gone without at least one paycheck; 38% of them said their employees had worked overtime without being compensated; and 18% of them had been unable to make a paycheck for their employees at least once. "During recent years, 78% of the owners have taken less profit, 70% have been working more hours, and 69% have used their own funds in order to keep their businesses afloat.
When asked what issues have been the most problematic for them, the owners didnt rank their access to financing in the top five, instead claiming lack of sales and consumer confidence were the most troubling factors."
Well, of course. Anybody with any common sense knows that. Everybody, the regime, Obama, running around trying to make this a credit problem. It's not. These business owners are scared to death of the future. They don't know what's in store, but they have a good idea, and they're frightened. They're frightened of Obamacare. By the way, a lot of people were expecting the court to announce its Obamacare decision today, but no. So next Monday, the 25th, looks like the day. The story is that they're still working on this opinion, and they're working diligently to get it right. Now, I don't remember who told me this. It was in a chat earlier this morning. But I would think this thing's already written. If they're still working on it, I would be dumbfounded. But I could be wrong about that. Anyway, that decision's coming Monday.
And look at this. Investor's Business Daily: "October Surprise? Debt May Hit Limit Before Election -- At the recent pace of debt growth, the US will reach its statutory limit of $16.394 trillion some time in October -- just before Americans go to the polls. The government has ways to stay below that ceiling for a few months, giving lawmakers a grace period. Treasury Secretary Timothy Geithner has said the deadline is early 2013.
"But the recent slowdown in economic growth bodes poorly for federal tax receipts. Any pickup in the rate of debt accumulation could pull forward that deadline into the super-charged environment of a presidential election. If the government is seen as dysfunctional in another debt standoff, the public will likely hold President Obama more liable than Republicans." And, by the way, that is also the opinion of noted Rothenberg Political Report Deputy Editor Nathan Gonzales. So let's say we hit the debt limit before the election and the same rancor assumes with the arguments and the debates over whether to extend it, that would be a real test for the Republicans. You know the pressure on Boehner and the boys? Oh, can you imagine?
It's a victory waiting to be had. It's a victory waiting to be snatched from our jaws, I'm afraid. But the other way of looking at it is, even if you let Obama win it and you expand the debt, that doesn't help. That's not what people want, and it would inspire even more anti-Obama turnout. So we shall see.
Let me grab a call real quickly here before we go to the break because Madeleine from Orange County, California, has been on the phone for a while. She is a business owner, president of a large corporation, and she wants to weigh in on this. Thank you for waiting, Madeleine. Glad to have you here. Hi.
CALLER: Oh, thank you, and let me just say, you are the champion of patriots.
RUSH: Well, thank you very much.
CALLER: Real quickly with my story. You know, I started over 20 years ago, got a divorce, went and worked for a company, learned everything, and went on my own and built a corporation running about a thousand men. I'm in construction, I'm a female, and we're private, we're not union. And so over the last four years, I have laid off 800-plus men. And I have made up my mind that if Barack gets four more years, I am going to close. I'm going to close the company down. I'm down to maybe 200-plus men right now. And my stress comes from laying these people off, and now I'm getting the lawsuits for wrongful termination. Someone called someone an old man, so I'm being sued for six figures on that.
RUSH: Wait a second. Hold, hold, hold, hold, whoa, whoa, whoa, just a sec. Wait a minute. I want to get the picture of this. You, Madeleine, are the only woman in a company that had a thousand employees.
RUSH: You had to lay off 800 of these guys, you're in the construction business.
CALLER: Yes, over the last four years.
RUSH: Last four years. Did you get any stimulus money for shovel-ready jobs from President Obama?
CALLER: Not a dime. Please. Not a stinking dime, because if you are a private company and you take one dollar of government or state or county money, you have to sign a deal with the union. And there is no way. So I do track residential. The union guys do the commercial, and they're not involved --
RUSH: You see, I asked her that 'cause I knew what the answer was gonna be. The key here is that Obama insisted that every job that got stimulus money to assist had to be a union job, be it a bureaucrat in a state government office or on a construction job, so you didn't get a penny because you aren't union.
CALLER: No. No. And nor do I want to be. The union is the reason why the economy is so horrific, and why he doesn't understand that -- well, he does. But it's just a matter of here I've laid off over 800 people who had jobs, who took care of their families. I didn't fire them. I laid them off so they're collecting unemployment. But now the stress is they're finding ways to come back at me. Seven months later I have a lawsuit where a guy said one of my guys called him an old man, Rush. So he found an attorney in LA who would take his case and he is now suing me --
RUSH: Let me tell you something, Madeleine, I know people who have told me that they live in fear of what's happened to you. They have to lay people off, and they know they're setting themselves up for lawsuits like the ones you're getting. But you have no choice, right? I mean if you had a 15,000-employee firm, you're down to 200, you didn't do that because you're mean. Nobody wants their business to shrink that much, right?
CALLER: Right, 'cause there is no work, and whatever work there is right now, it's just a matter of no profit, rolling dollars just to keep the employees who have been with you 20- plus years going. And now as far as me, I still take a check, I would have shut down if I would have taken no check. Because that doesn't make sense to me to risk the liability, to risk everything --
RUSH: All right.
CALLER: -- and you're not even taking a dollar?
RUSH: I understand that, but you're gonna shut down if Obama's reelected?
CALLER: Yes, I am, sir. I certainly am.
RUSH: Specifically why?
CALLER: Because the worker's comp has doubled because of the lawsuits. Just I've had it, I've really had it, and there is no profit. You're rolling dollars. I'm not borrowing money because I've been a good business steward to keep it afloat, but there just is no more profit in it, and so why do I want to risk the lawsuits and the liability and the workers' comp, why do I want to risk all that? Workers comp has doubled.
RUSH: Right. Well, plus, health care is part of that, but on top of that, to boot, you'll be buried.
CALLER: Exactly. So it's bye-bye after 20 some years. I don't know where my employees who have been with me for 20 some years are gonna go and get a job because everybody's in this situation.
RUSH: Well, plus, it's California, so you got a double whammy.
CALLER: Double whammy. He's gonna raise the taxes and thinks anybody who makes over a certain amount wants to pay more so we're gonna vote for that. I mean, it's crazy. I'm headed to Texas where Governor Perry is.
RUSH: Wow. See, that's federalism, folks. You can move. But when the Feds start doing this stuff, there's nowhere to go to escape it. Madeleine, God bless. Good luck.
RUSH: Bill in Clayton, North Carolina, welcome to the program, sir. Hello.
CALLER: Rush, it is a honor. I have tried numerous times to get in touch with you, and I just came out of Lowe's here in Clayton, North Carolina, and I got through. It's a very big honor.
RUSH: Well, that's the first time I've had anybody on the phone that just came out of Lowe's.
CALLER: Rush, you said something today that really tickles me. I want to say it. It's when you talked about Sarah Palin and you said, "Right on!" I love it when you go, "Right on! Right on!" I love it every time you say that. It makes me chuckle. But I wanted to get to the point that a lady said a few times when she called back in. She hit the nail on the head. And I said, "I gotta sit down with my employees." I only have two employees here in Clayton. One I just hired from New Jersey and he never voted in his life. Well, he voted for the mayor one time. At least that's what he said. And I told him that if this president gets in again -- and my wife said this morning she thought it's crazy, but -- I will close down. I'm tired of this. I work my tail off, like I told Snerdley. I work sometimes late, late, late at night because I can't hire nobody.
RUSH: What is your business?
CALLER: I'm in heating and air. I own my own business. I run it. I answer the phones. I do everything. I started from nothing. And I have a lot of customers, but what it is is the government. Like that woman said, workmen's comp is one of the biggest things. With just employees -- two employees, not counting me -- I pay $8,000 a year. Just for two employees. This story right now I'm gonna tell you --
RUSH: Wait a second. Wait, did you say $800,000?
CALLER: No, sir, $8,000.
CALLER: Eight to ten thousand dollars just in workmen's comp. That's if someone gets hurt, they'll take care of it. And we never had a problem with anyone getting hurt. But with a small company like that, I can use that for something else. I can hire me a secretary to answer phones.
RUSH: Let me ask you a stupid question. It gets hot in North Carolina. What is the problem with your business? Do not people make sure their air-conditioning is working in the summertime? I mean, if it goes out, they have to get it fixed.
CALLER: They do, but it's not about the problem with the summertime. It's for the full year. I mean, we are so busy right now, it's unbelievable.
RUSH: Well, then why are you gonna shut down if you're so busy?
CALLER: 'Cause I'm just tired of working my tail off. I'm tired of all these other people getting their handouts and I stay here working all night.
RUSH: Oh, okay.
CALLER: I have a family.
RUSH: Okay, I got it. You're working all these hours and you've got pay all this other stuff to everybody else before you pay yourself.
CALLER: Yes. I mean, the thing is it's not the main thing. It's the principle of it. It's gotten to the point of where we're just a handout, and why should I have to pay for somebody else's handout and my taxes and everything.
CALLER: Well, you're "going Galt," buddy. You're "going Galt."
CALLER: Yeah, I'm gonna go work for somebody else.
RUSH: No. No. Galt means, "To hell with it." You're tired of pulling the cart. You're tired of pulling the cart and 99% of the people in the cart being pulled. You're tired of pulling it. You're going Galt. Ayn Rand, John Galt. You've had it. Madeleine in Orange County, California, essentially was saying the same thing. If Kardashian is reelected, they're just gonna shut down. He's working 90-hour weeks and he's got nothing to show for it. That's his problem. A lot of other people have a lot to show for how hard he's working, but he doesn't. That's what he's saying. He's thinking he owns a business, "And if I'm putting in all these hours, I ought to be getting something out of it."
But he sees it all mandated to others.
I hear what he's talking about.
I know it firsthand.
I pay 5% of my payroll for state unemployment. I just got a special bill to pay the interest on the federal money.
I have two close relatives, both of whom have told me their companies will have to fold if Obama is re-elected.
My wife and I both had lucrative businesses in 08. In 09 mine folded and hers will need to if the _astard is re-elected. That’s a total of 80 unemployed people on our end.
In addition to his war on religion, Hugo Hosni Obama, the Food Stamp President is waging war on small business. His ideal solution is to ruin small business and have everyone work for the big companies like Government Motors or GE under union overseers. Essentially communist slavery!
The government has made it so freaking expensive to employ someone legally that it is no wonder that many construction companies are willing to hire illegal aliens under the table.
At the end of the day all any of us are witnessing is theft by government. This is not America anymore.
Glad for the POST
17% work for government
13% work for large corporations
70% work for small business
99% of even FOX Business News and talking politicians are about the government and Wall St, yeah they talk about lowering taxes like that’s going to do a small business guy any good who isn’t making any @ now.
No one really seems to care or try to analyze what has happened to the small entrepreneur in America
Funny how half the people posting on this site have no sympathy for this Business Owner.
Thanks Vintage Freeper for posting this:
“I have little to no faith in romney doing anything but continuing in obamas foot steps.’
If you’re talking about economic policy, that’s a stupid statement.
Ditto. Working on proposals right now. 16 to 18 hours a day in one form or another most days.
We have work but it just takes more and more effort to do less and less that is profitable.
All small business people live in fear of what unknown law or rule they have violated that can end their business with penalties and such. The whole mess is just relentless.
Eventually you chuck it. The days of people who had businesses for years and years are ending. The kids don’t wnat them because they have seen their parents ground down to dust under the heel of the government, lawyers and live as slaves for their employees.
I’ll give you a viewpoint from business startups that I haven’t heard yet.
I started a company recently to compete in a multibillion dollar industry that is poorly served and desperate for a better product. So I invented the better product. I have several choices for getting it to market and realizing its profit potential. I can slug it out and go private industry. I can go for venture capital and take on financial partners. Or I can sell it to the Chinese that are willing to pay above top dollar and walk away a rich man.
Due to the government burdens, slugging it out isnt an option. The risk of failure can become too great, and the loss of profits to taxes is beyond ridiculous.
Venture capital is risky as well and comes with it their total domination with me getting far less than expected.
The Chinese are willing to buy it outright and work hard to make the product successful. They stand an excellent chance of making that happen. The Chinese are willing to take my product outside the US and evade US taxes. The US wants basically half my dough. Half. For what??
When Congress and the rest of the polidiots get together they fail to remember places like the Soviet Union tried to keep people and resources inside but the country eventually failed. Half the people in this country pay taxes to feed the other half that are too lazy and stupid to feed themselves.
My husband’s company is in the same boat. The business won’t be able to make a profit when the taxes for Obamacare kick in. Other taxes such as unemployment and workman’s comp have also skyrocketed.
This is Atlas Shrugged coming to REAL LIFE! Close your business and take your money and risk capital off the table.
I’ll bet a lot of those 800 laid off construction workers are vacationing back home in Mexico. Or they’re collecting welfare via an anchor baby. There hasn’t been a large non-union residential construction firm in SoCal hiring Americans in decades. Custom builders, small shops, remodel firms, they hire Americans.
The drywall trade in SoCal was a classic example. In the ‘70s it employed a lot of blacks. It was unionized and provided a decent living. But the builders broke that union by hiring illegals for about a third less. The illegals could afford the lower pay by living 20 to an apartment, saving their money to take back to Mexico. Payback came some years later when the illegals threatened to strike and drove drywall costs back up.
There is also the problem of bankruptcies, businesses just folding and not paying you for services performed.
TAKE THE MONEY AND RUN!!
You are delusional to think that mitt will make the changes necessary to save our economy... he will just prolong the agony of the fall of our economy. One has to look at his record in office as governor... for that is what he will do as president. I do not think you will have to worry about mitt winning after his embracing the kenyan’s unconstitutional power grab through Amnesty. mitt told fox news yesterday that he would not pledge to get rid of obama’s amnesty plan... and those millions of jobs will cost our economy more $$$$ and rob jobs from tax paying American citizens. That is twice now that mitt has shunned Conservative ideology and agreed with obama... and it will not be the last time either. mitt must be defeated at the convention by whatever means necessary. mitt may not be obama but he will drive the car to the same destination... he may take a longer and different road... but failure is the address we will arrive at.
And of course the Federal government has the power to make such a distinction pursuant to the equal protection clause.
And I'll bet nobody sued.
800 employees doesn’t qualify as a small business. That said, there’s a lot of businesses that will go down if the imposter is reelected. Probably mine included.
Depends on the size of the town where the business is located, but if you paid attention she is down to 200 employees
I have sympathy for ALL the business owners in this economy. I know first hand how government regs have destroyed small business. Right now we have 3 generations living in my house! My daughter lost her small business, and my father in law cant make it on his retirement and ss checks due to increased utilites, food, rents, medical, etc. This country is in such a sad state......God help us if obozo gets reelected. Oh and btw, none of us qualify for ANY of the free handouts the gov likes to give away.
Back during the 1982 old depression in South Texas I experienced the same thing. My employees never missed a payday but the electric company was turning my home power on and off and there were times that I was completely out of cash to buy anything for myself.
You have to go through it to even realize the hardships that a small business owner can experience with a downturn of the economy. Eventually I had exhausted all of my savings just to make payroll. Eventually, the bankruptcy filings from my customers forced me to lay off all workers and I had to bring the business back to prosperity by myself. Now, years later, I prosper but EXTREMELY cautious in hiring more new employees or buying new equipment due to the uncertain future to come.
The lessons learned in 1982 guide my daily personal and business life to this day and will into the future.
This was all for long time ago.
Now the next election is here. Hold on for a bit longer.
If Romney wins, then this will turn around. Bigtime.
You seem to hate businesses, banks and private industry in general. What is your preferred government run economic system? Monarchy? Dictator? Fascism?
I heard that woman call in.
The first thing I thought of was that any Liberals, and Obama himself (if he was listening) were besides themselves with glee. Their policies are working, and, given the chance, they’ll double down.
“mitt must be defeated at the convention by whatever means necessary.’
Our priority is to get Obama out of office, win congress, then work with Romney as best we can. Any other efforts are futile delusions.
COBRA for the two of us is $1300 a month.
Tapping the Retirement Funds while I type this. Thank goodness I followed the Golden Rule, save for a rainy day or an Obama Presidency.
I’m probably more in agreement with you after seeing this today...
I just keep pulling out my copy of “IF” by Kipling.
Good luck to us all. We are getting older and more tired. Somedays I don’t know if I have enough energy to pull another rabbit out of the hat.
We really have no choice do we? We just have to keep going until we can’t anymore or we finally succeed.
yahoo my friend.
“You seem to hate businesses, banks and private industry in general.”
Hardly. You need to stick to commenting on posts that you are capable of understanding, which obviously doesn’t include what I write.
“You seem to hate businesses, banks and private industry in general. What is your preferred government run economic system? Monarchy? Dictator? Fascism?”
I’ll add another point. Disagreeing with your ignorant posts regarding investment banking on that other thread is what has your panties in a wad. You’d be better served by educating yourself instead of resorting to throwing mud. Not that a lack of knowledge seems to slow you down.
I have never been more depressed about our future or the party that has screwed over me for decades. There is no hope for a shining city... only fear of burning cities... there is no hope for prosperity... just hope for it not to get as bad as it can get. In closing... there is very little hope of any good coming to America and I am now thinking that I may never live to see her in glory again. mitt romney isn't going to do anything but weld the doors shut to Conservatives and install the rockefeller wing of the party into permanent leadership roles.
Conservatives HAVE NO PARTY... WE HAVE NO REPRESENTATION...WE HAVE NO HOPE. I will pledge to fight both parties until I no longer draw breath... I will fight for America but I see little in the way of a path out of this wilderness... maybe a new party... but can America survive the time it takes to form one and grow it? I think not. When you see a gop/e leader... tell them how much you despise them and how much you blame them for our destruction... they have allowed the communist incrementalism that is killing us... the dims are the major players but they could not have accomplished what they have without treason from within the gop.
Well I have no hope left but I do have a lot of fight left in me. I never thought that I would see the republican party and the dim party BOTH working on the total destruction of what WE THE PEOPLE HAVE BUILT... for NO politician has ever built a damn thing... they are not workers by definition. They are royalty... an elite ruling class of those that never had what it takes to make it in the real world. They either teach... go into politics... or both.
You are deluding yourself my FRiend... he will just take a different route to the end.
yes - people don’t realize the resources wasted because states have to pay interest to the feds.
I thought I would see stories everywhere once those bills went out.
I think you should contact Thomas Sowell. I’m sure he would be horrified to learn that he published a book that is providing misinformation to the public.
Maybe you can educate him and show him the error of his thinking? Maybe offer to edit his book and remove the mistakes?
“Maybe you can educate him and show him the error of his thinking? “
I wouldn’t have to, there’s already an abundance of writing on the bubble by people who were in the industry. Chain of Blame, Fool’s Gold, ECONned, these are a few worthwhile books illuminating the crisis. There are many more. And there’s valuable articles like the Wired piece on David X Li’s Gaussian Copula function.
Sowell errs by falling for the CRA bogeyman. The CRA cannot explain the billions of dollars plowed into the subprime mortgage market by the shadow banking system and investment banks. The CRA didn’t cover them, they were non-depository firms. The CRA also cannot explain the bubble’s international character. This wasn’t simply an American phenomenon. And if every CRA loan ever made had failed you couldn’t have generated a collapse like 2008, there simply weren’t enough of them. Moreover studies by the Fed and investment houses like Lazard have identified the failure rate for CRA loans at around 6%, whereas private market subprime loans failed at triple that rate. This is easily acquired information.
Sowell isn’t the first to blunder when writing outside his field, and the peculiarities and history of mortgage funding isn’t his field. It’s a shame to see him misleading novices like you.