Why is small business failing?

[techno900]

pueno said:

[swchandler]

If a product comes to market, and no one has the money to buy it, the product won't sell.

I couldn't have started windsurfing if I didn't have the money to invest in it. Frankly, I borrowed the money to buy the gear, but I ultimately had to pay it back with interest. Needless to say, it was a wise investment overall. Over time, my continuing investments in windsurfing has allowed many to benefit financially. Without buyers like me, many folks in business wouldn't be able to make it.

[techno900]

sw said:

[mrgybe]

"You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new." Steve Jobs.

To suggest that consumers are the real job creators is complete nonsense. Entrepreneurs create demand for their product by persuading consumers they need that product. This hypothetical "if consumers have no disposable income there will be no jobs" is absurd. There always have been, and likely always will be consumers with disposable income. The successful entrepreneur figures out how to extract part of that surplus. For the entire history of mankind, no-one knew they "needed" a smartphone. Now they all need one.

[swchandler]

"The left just can't offer a viable argument/solution here."


Now, that statement is just plain dumb. To go a step further and begin to indirectly suggest that the right can actually offer a viable argument/solution here is just as dumb and foolish. How can you have a discussion when it is reduced to this kind of nonsense?

There has to be the ability to spend, but where the real heart of the issue comes in is the desire to spend it on particular things. That's why I commented about the issue in the context of windsurfing.

Back in much earlier and simpler times, folks needed to work their ass off just to be able drink, eat and live to the next day. In concept we do the same thing today, but the necessities of life are just a bit more complex and developed. However, if one works hard enough, and wisely accumulates wealth, we have the luxury of indulging our fancies. Avenues of wealth are developed by meeting the needs of those with the money and desire to spend it.

You can look at the situation simply to get a more accurate picture. If you have light, water, a good seed and the medium to grow, a plant can survive. Take away any of the basics, or reduce their essential qualities, and the likelihood of success falls off dramatically. You can easily put society into this simple picture to see how interdependent things really are for success.


"The successful entrepreneur figures out how to extract part of that surplus. For the entire history of mankind, no-one knew they "needed" a smartphone. Now they all need one."


Well, I have the money, but I've never owned a cellphone, much less a smart phone. Is it really a necessary part of life? I can assure you that my life isn't centered around a cellphone. You can complicate life any way you want, but does that make for a better life?

[techno900]

sw, read pueno's post again and stay on topic. My response was to counter his post. I probably goofed up using "argument/solution" because my point is just about the argument.

[swchandler]

Actually, I was staying on topic, but you're just not seeing the picture. You seem to want to discount consumers and inflate the role of entrepreneurs.

Much of what pueno was saying is true. At the same time though, it is also true that people with ideas and the means get the ball rolling are an important ingredient in the mix too. There are a lot of factors that create a sound and bountiful economy, and I think that I recognized that in my earlier comments.

To think that policies that let the oligarchs grow richer at the expense of middle class success, is a poor foundation for strength and growth. To honestly look at the way things have been moving for the last few decades, we're clearly moving in the wrong direction, and the skewed distribution of wealth signals that. I think that if more emphasis and attention was placed on creating a stronger middle class, we would be doing far better moving into the future. A vibrant base of consumers leads to stronger economy. Without them, entrepreneurs can't reach their true potential. Balance in the game is crucial.

[techno900]

sw said:

[uwindsurf]

[techno900]

From the article, during Obama's presidency, the lower class has shown steady gains in income while at the same time, the upper class has shown a steady decline. I guess the income re-distribution has been working, except for the middle class.

I wonder (actually don't know) if income data includes assistance/subsidies?