Posted on 04/22/2020 7:06:29 PM PDT by BurgessKoch
Jamie Black-Lewis felt like she won the lottery after getting two forgivable loans through the Paycheck Protection Program.
Black-Lewis saw the $177,000 and $43,800 loans, one for each of the spas she owns in Washington state, as a lifeline she could use for payroll and other business expenses.
She’d halted pay for the 35 employees — including herself — at Oasis Medspa & Salon, in Woodinville, and Amai Day Spa, in Bothell, in mid-March, when nonessential businesses in Washington closed due to the coronavirus pandemic.
When Black-Lewis convened a virtual employee meeting to explain her good fortune, she expected jubilation and relief that paychecks would resume in full even though the staff — primarily hourly employees — couldn’t work.
She got a different reaction.
“It was a firestorm of hatred about the situation,” Black-Lewis said.
The animosity is an unintended consequence of the $2.2 trillion coronavirus relief package enacted last month.
The law, the CARES Act, offered $349 billion in loans for small businesses struggling as a result of Covid-19. Banks, backstopped by the federal government, can fully forgive the loans under certain conditions.
Among them, the bulk of funds must go toward payroll, salaries must remain intact and employee head count must not decrease. Businesses have until June 30 to rehire laid-off or furloughed workers.
Black-Lewis was trying to meet these rules, especially after her bank reiterated she must continue to pay workers for loan forgiveness.
The anger came from employees who’d determined they’d make more money by collecting unemployment benefits than their normal paychecks.
(Excerpt) Read more at cnbc.com ...
“Again I ask, how is repairing cars where he lives?”
I think you mean “who” but in any case your question is meaningless. Just because people need cars fixed does not mean everyone will have the capital to newly open or keep open a shop to do so after a major financial loss or penalty.
When are you going to open a car service shop in your area? You probably work in another business and can’t work 24 hours a day. You’re limited in what you can do. Well, some people get limited by financial loss. Is this really news to you? I knew someone who made a million dollars (gross) in four years running his own garage. He lost the garage anyway. It was because of a combination of high costs and the fact that he couldn’t control himself. And, yes, people are still getting their cars fixed in his area - at that same facility - only he doesn’t own it now. That happens.
“The average car is 11 years old now. So there is a lot of repairing still going on.”
Of course. And are you doing those repairs? If you aren’t, why not? Why aren’t you doing it? Why aren’t you running a garage?
Congress knew this would be an issue.
Congress don’t give a damn.
But there will still be people who want to work. When small biz re-open, find and train those folks. Th
If any of the young generation live through it, they might just turn out like the generation coming out of the Great Depression. Hardened like tempered steel. The kid of folks who could kick nazi and jap asses.
The Gods of the Copybook Headings have returned.
Not just ours! The EU is going to default. Japan? The whole world is about to collapse economically and I've had an ill sense that a reset will be formed around a global currency.
“ If the good or service cannot be produced with American labor and make a profit at the same time then that good or service is not necessary. There is no real demand for it.”
Thanks for clearing that up comrade. So now explain to this befuddle person how much the American labor should be paid. I want to understand all of the goods and services for which there is not “real” demand.
You must know what an American wage is.
Ha, ha, ha.........
Your ignorance gives us yet another laugh
Of course when you live under a rock, you needs are very limited
For example to illustrate the absurdity of what you are saying I will use bacon. I can't set the price of bacon at $2.00 pound an demand the grocery store sell it to me at that price. That is absurd.
So if an American business needs labor at $12/hr to be profitable they just negotiate it. Nice world you live in.
They need labor PERIOD. Just like McDonald's need beef and potatoes. All prices are negotiable. I think you are a communist....
I am not the one declaring that there is no “real” demand for goods and services for business unable to afford your undefined American wage. You are and that is what communist do. They wave magical wands.
What we are talking about is market share for a good or service. Every time a business goes under another one gains market share and increased price authority. This economic winnowing out will finally reach equilibrium with American labor being employed.
Do you believe there are any limits to price authority? Or do you believe can the last business standing charge whatever is needed to support the wage rate demanded by an American worker?
No good deed goes unpunished.
Also, socialism doesn’t work.
Yes. That is how a free market works. They will be able to charge what they want until they get a competitor. If they charge too much then demand will go down, if they charge too little the demand will go up. Regardless, they will have complete control of price until they get a competitor. This is called a "monopoly" by the way.
So, fire the "I wanna get money for not working" crowd and replace them with an equal number of "I wanna work, when can we start?" folks. Letter of the law.
Sorry....that is not what you wrote:
“Upgrade computers, paint walls, start marketing and sales programs, business consultants, financial planners, inventors. Think outside the box. It’s a gift, if you can’t use it for employees use it for something else.”
Add the phrase "up to a total from all sources of 75% of prior year's weekly* wages" to the fed grant. Keeps people reasonably solvent, but provides incentive to return to work.
*Or whatever pay period is covered.
They are the ones who would have voted RAT anyway.
They won't close forever...most will reopen under new ownership.
It’s a gift, if you can’t use it for current employees use it for something else other people you can hire .”
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