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Why is small business failing?
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MalibuGuru



Joined: 11 Nov 1993
Posts: 9288

PostPosted: Mon May 12, 2014 1:05 am    Post subject: Why is small business failing? Reply with quote

https://www.youtube.com/watch?v=B2Nk25C6mes

Here Bernie Sanders and Janet Yellen try to explain the new Oligarchy in America. She seems to have no answer.

They keep trying to tax the guy making over 500k, rather than make it easier for more middle class people to start their own businesses. The system is so corrupt, and the regulatory barriers so high that American small business just isn't coming back.
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pueno



Joined: 03 Mar 2007
Posts: 2807

PostPosted: Mon May 12, 2014 4:40 am    Post subject: Re: Why is small business failing? Reply with quote

stevenbard wrote:
Here Bernie Sanders and Janet Yellen try to explain the new Oligarchy in America. She seems to have no answer.

They keep trying to tax the guy making over 500k, rather than make it easier for more middle class people to start their own businesses. The system is so corrupt, and the regulatory barriers so high that American small business just isn't coming back.

On the contrary..... she has answers, but perhaps you don't like her answers.

Sanders cites the Walton family and the Koch brothers as examples of the wealthy. You snivel about the middle class guy starting a business.

Sanders points out that the Koch brothers increased their personal wealth by billions in one year and buying/selling unlimited politicians with their unlimited resources, and you complain about regulations.

Yellen says that she agrees there's a problem but that Congress must solve it, not her.

I'd suggest that maybe it's not Sanders and Yellen who have a problem explaining something. Instead, the problem might be you not understanding simple economics.

The taxes (or lack of) on the super-ultra-overthetop-wealthy don't have much correlation with what the small businessman does or doesn't do.

Quite frankly, you sound like someone who's having trouble with your small business, and you're looking for someone else to blame for your lack of profitable customers.
.
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uwindsurf



Joined: 18 Aug 2012
Posts: 968
Location: Classified

PostPosted: Mon May 12, 2014 7:43 am    Post subject: Re: Why is small business failing? Reply with quote

stevenbard wrote:
https://www.youtube.com/watch?v=B2Nk25C6mes

Here Bernie Sanders and Janet Yellen try to explain the new Oligarchy in America. She seems to have no answer.

They keep trying to tax the guy making over 500k, rather than make it easier for more middle class people to start their own businesses. The system is so corrupt, and the regulatory barriers so high that American small business just isn't coming back.


It would be helpful for you to be specific in your allegations and identify the "corruption" and "regulatory barriers" preventing the opening of a small business. Unsubstantiated general statements do little to advance a discussion.
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mrgybe



Joined: 01 Jul 2008
Posts: 5180

PostPosted: Mon May 12, 2014 9:44 am    Post subject: Reply with quote

We own a place in the Allegheny mountains and buy produce from a local farmer. This is an extract from the farm web site.

"Why 100% Natural and not Certified Organic?

We choose not to be organically certified for several reasons:
We sometimes source high quality hay from some of our neighbors, who cant afford- or justify the certification process.
“Certified Organic” has become big business and a profit center for the federal government. We choose not to support that.
It is an expensive, tedious process that only increases the prices we would have to charge for our beef."


Specific enough?
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isobars



Joined: 12 Dec 1999
Posts: 20935

PostPosted: Mon May 12, 2014 10:43 am    Post subject: Reply with quote

Brookings: More businesses dying than being created — for first time ever
posted at 10:41 am on May 6, 2014 by Ed Morrissey



"Behold, the power of Obamanomics. More businesses are failing now than are being created, a first for the American economy since the Carter era, according to a new study by the Brookings Institution. That has become even more true during the Obama “recovery” than during the Great Recession.", he says.

Notice the crossover point generated by the entry and exit surges in the wrong directions: it implicates both Bush and Obama, so I think Morrissey is being harsh with his opening statement above. I neither know nor care where the rest of his article goes with it; my concern is that it's all headed downhill and Obamanomics is exacerbating the problem.

One source: http://tinyurl.com/m7sh8yf
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boggsman1



Joined: 24 Jun 2002
Posts: 9110
Location: at a computer

PostPosted: Mon May 12, 2014 11:10 am    Post subject: Reply with quote

mrgybe wrote:
We own a place in the Allegheny mountains and buy produce from a local farmer. This is an extract from the farm web site.

"Why 100% Natural and not Certified Organic?

We choose not to be organically certified for several reasons:
We sometimes source high quality hay from some of our neighbors, who cant afford- or justify the certification process.
“Certified Organic” has become big business and a profit center for the federal government. We choose not to support that.
It is an expensive, tedious process that only increases the prices we would have to charge for our beef."


Specific enough?

And the biggest problem with this is the Fed has ONLY 1 standard for certification. So, a giant farm gets the same process as a small farm. This is what ended the raw milk market. Farmers couldnt afford the upgrades that were forced upon them, so many produce under the table, and fear for their lives.
I still think that it is the big boxing of America that has made it near impossible to compete as a small producer of anything.
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MalibuGuru



Joined: 11 Nov 1993
Posts: 9288

PostPosted: Mon May 12, 2014 11:35 am    Post subject: Reply with quote

The metaphor "big boxing" rings true from my perspective. What Monsanto wants, Monsanto gets. (and they can afford it!) If either party were to try and solve this problem without bringing up taxation they'd win some votes.

Same thing with global warming. Embrace the environment without scaring voters off. (without another big govt agency)

Ideology has trumped reality IMO. The best thing we could do for this economy would be to jump start small business. Obamacare left businesses with under 50 employees out. Most government agencies should do the same (within reason).

Right now foreign and domestic capital are fleeing into stocks and real estate. There are homes just a few hundred yards from my home that are selling in the $60 million dollar range. The rich don't know what to do with their money, so are chasing luxury real estate, rather than pumping it into manufacturing and R&D. Larry Ellison is buying every prime piece of Malibu he can. Why?
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pueno



Joined: 03 Mar 2007
Posts: 2807

PostPosted: Mon May 12, 2014 1:39 pm    Post subject: Reply with quote

stevenbard wrote:
The rich don't know what to do with their money, so are chasing luxury real estate, rather than pumping it into manufacturing and R&D. Larry Ellison is buying every prime piece of Malibu he can. Why?

No, WAIT, WAIT, WAIT...!!!

Aren't the rich the "job creators"?

Why aren't you celebrating all the jobs those guys are obviously creating?

Isn't it time to give them yet more tax breaks so they can create more jobs?
.
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keycocker



Joined: 10 Jul 2005
Posts: 3598

PostPosted: Mon May 12, 2014 1:41 pm    Post subject: Reply with quote

Excellent example.
We grew and sold organic produce in the sixties. We found from chatting with others in the farmers market that their organic produce was not organic at all. Nearly everyone took advantage of lax regulation.
Folks like my health food nut mother didn't pay double for organic because she knew it was a con in those days.
This is true today for "natural" products. The word has no regulation so it is being used to trick you.
The whole organic movement depends on trusting the labeling because of enforcement.
When there was no regs- there was no reliable organic food industry.
The clients who wanted to buy real organic food were joined with honest people who wanted to sell it.
The key factor needed was the regulation of the use of that word in food sales.

Let's go back to that magic time when food made you sick because of lax regulation of the industry.
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MalibuGuru



Joined: 11 Nov 1993
Posts: 9288

PostPosted: Mon May 12, 2014 2:04 pm    Post subject: Reply with quote

pueno wrote:
stevenbard wrote:
The rich don't know what to do with their money, so are chasing luxury real estate, rather than pumping it into manufacturing and R&D. Larry Ellison is buying every prime piece of Malibu he can. Why?

No, WAIT, WAIT, WAIT...!!!

Aren't the rich the "job creators"?

Why aren't you celebrating all the jobs those guys are obviously creating?

Isn't it time to give them yet more tax breaks so they can create more jobs?
.


Don't be a fool. They have been incentivized to put their money into hard income producing assets instead of manufacturing and research.

Secondly, a guy who's making 500k-1million isn't the problem. Small business creates most new jobs in America and should be the top priority of any administration.
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