Posts Tagged ‘business’

Grounded!

April 20, 2010

A cloud of volcanic ash has grounded flights throughout Europe.  This has caused enormous difficulties for thousands of travelers and cost businesses huge sums of money in added expense and in lost revenue.  There is increasing pressure to allow flights to resume quickly.

I hope that the pressure will not cause a premature lifting of the no-fly order.  I recognize the disruption caused by the grounding of all flights, but safety, not profit, should remain the primary concern.

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Reduced Freedom

March 31, 2010

The passage of the new health care bill will result in many more people having coverage.

Whether they want it or not.

The bill will require companies to provide health care coverage, or pay a fine.  Either way it will increase the cost of doing business in the United States.  That cost will be passed on to customers.  It will also be one more reason to send jobs out-of-country, where the cost of doing business is cheaper in many ways.

The bill also requires individuals to purchase health care coverage, if they do not have it provided, or pay a fine.  Yes,  there will be a subsidy, but for many people, the subsidy will not cover the cost.  It will be one more added expense for people who already are having a difficult time.

Comply or be fined.  Those are the options, and it is a reduction in our freedom to direct our own lives, and our own businesses.

The Burden of Unemployment

November 24, 2009

The burden of unemployment could be considered from multiple views, society, the family, the individual and the workplace.  This post addresses the burden placed upon the employer.  You see, when congress decided to extend the unemployment benefits, they did not talk very much about the price tag.  The fees that each business must pay to the state for every employee is calculated by the cost of the program.  Extending the benefits meant higher costs.  Higher costs are then passed on to the business.  This year those costs have skyrocketed. 

I thought the goal was to create jobs, not destroy them.

The current unemployment policies are creating a tougher climate in which to survive in business.  How many small businesses will not survive?  How many jobs will be cut to pay for the higher cost? 

Higher minimum wage, higher taxes, higher unemployment costs, tougher, more expensive, environmental guidelines; and soon, if Democrats have their way, forced health insurance or penalties are all combining together to make it very difficult on businesses.  We are creating a very bad climate for the small business. 

What will the future bring?  What are the repercussions of the decisions of our government on the economy?  Where will we be in a few years?  Did America really want this kind of change?

Brain Drain??

October 27, 2009

I read an article the other day about the steep reduction in pay being forced upon the executives of the large banks that had received a government bailout.  The concern that was expressed was that these individuals were brilliant in their fields, and that if they were not paid what they thought they  were worth, that they would quit their jobs to work for someone else.

If they are so brilliant, then why did the government need to bail them out?

For most people, if their area of responsibility had failed miserably, they would be looking for a new job, not cashing bonus checks.  Are they going to put on their resume  “We oversaw the destruction of our last company, now what can we do for you”???

If the government had not bailed them out, either they would have worked themselves out of the hole, or they would have been fired and replaced, or their entire business would be consumed by other businesses that were run more efficiently.  The business world can take care  of itself.  The strong survive, the weak are devoured.

Why did we interfere?

The Shackling of American Business

July 16, 2009

A few years ago the newly Democratic congress made it a priority to substantially raise the minimum wage.  I wonder what happened to those businesses that were barely surviving?  When the government forced them to raise their employee compensation I imagine some of them had to shut down.  Those employees who were making minimum wage were then added to the lists of the unemployed, and the businesses were no longer paying taxes, since they could not afford to stay in business.  They were too small to survive the increase in overhead cost.

Now our Democratic president and congress are pushing through a bill that will require “those who can afford it” to provide health insurance for their employees.  Who is going to decide “who can afford it”?  Will it be the same people who have approved spending enormous sums of  money that we do not have ourselves?  I do not trust them to make the right decision.

I am confident that there will be some companies that will not survive this latest burden being placed upon them by the government. 

More people on the unemployment roles.

Less companies paying taxes.

I suspect that politicians forget what life is like in the “real” world.  Most families are two income families.   At least one, needs to find a job that offers benefits.  That means that the other partner could work a job that does not offer benefits, but that still adds to the family income.  There is a place for the job that does not offer benefits, but that still provides income. 

In the world that I live in, you accept whatever job you can get, and then you look for a better one, until you are satisfied with your situation.   

Employers pay as well as they can afford to pay, so that they retain their good employees. 

It’s called free enterprise and it has worked pretty well.

Our government is going to squeeze more companies out of business by placing upon them the shackles of mandatory higher wages and now, health care provision.