Wait and See Jobs

The American people didn’t send us here to wage symbolic battles or win symbolic victories.  They would much rather have the comfort of knowing that when they open their first paycheck on January of 2011, it won’t be smaller than it was before, all because Washington decided they preferred to have a fight and failed to act.

Make no mistake:  Allowing taxes to go up on all Americans would have raised taxes by $3,000 for a typical American family. And that could cost our economy well over a million jobs.–Obama Dec 6, 2010 from Whitehouse.gov.

So what’s changed in 7 months?

Why is creating jobs so hard for business these days?

Think of it this way. When an employer hires a full-time worker, the employer thinks of the relationship as long term. During an initial training and learning period, the employer probably pays out more in wages and benefits than the company gets back in production. But over a longer period, the hope is to turn that around and make a profit.

When employers hire new employees, then, they are making a gamble. They are betting that over time, the economics of the relationship will pan out.

The problem in the current economy is that hiring new workers and committing to new production has become extremely risky. As the JCA folks explain, an employer who hires workers today has no idea what the company’s future labor costs will be. Or its building and facility costs. Or its cost of capital. Or its taxes.

What’s causing all this uncertainty? You guessed it. Nobody knows what is going to happen in Washington, D.C.

Take the cost of labor. The Affordable Care Act (what some people call ObamaCare) is designed to force employers to provide full-time employees with comprehensive health insurance in less than three years. While the goal may be admirable, the consequences are not. Although no one knows how much this extra burden will cost, estimates are that the required family coverage will reach $15,000 a year or more — the equivalent of an additional $6 an hour minimum wage.

Employers could decide to drop their health insurance altogether; and if they do so they must pay a fine of $2,000 per employee per year. Yet if a lot of employers do this (and apparently a lot of them are thinking about it), don’t you think the federal government will respond by making the fine a lot higher?

Then there is the National Labor Relations Board (NLRB). After the aircraft maker Boeing spent $1 billion building a new plant and hiring 1,000 workers in South Carolina, the agency brought a halt to the whole thing, calling it an unfair labor practice. Boeing’s sin? South Carolina is a right-to-work state. The company should have built the plant in Seattle, where it would be required to use union labor.

There is more bad news. The NLRB is considering rule changes that would make it much easier to unionize workers. Would you like to see employers across the country facing the same kind of turmoil state governments are now facing in dealing with public sector unions? Most employers don’t relish that idea either.

Under the Obama presidency, the NLRB has made a radical change of direction. Some would say it is much more pro-labor, but this is a misnomer. What the agency is dedicated to is not labor, but making labor more costly.

As for capital investments such as new buildings and new equipment, here again there is considerable regulatory uncertainty. It should come as no surprise that the Obama administration is overly friendly to environmental groups who see carbon dioxide emissions as pollution. Yet every act of production emits carbon dioxide. You even emit it when you exhale.

As for the cost of financial capital, what is going to happen is anybody’s guess. When the Bush tax cuts finally do expire, the tax on capital gains will increase by a third and the tax on dividends will more than double. The administration has made no secret that it would like to accelerate these tax increases and make them even higher.

Bottom line: even if there were no Republican opposition in Washington, we would be in trouble. The Obama administration is profoundly anti-labor. It thinks it is pro-labor, of course. But that is because it is so naïve about economics that it doesn’t understand that when you make hiring more costly there will be less hiring.

But there are Republicans in Washington, and (ironically) their presence in some ways adds to uncertainty. While the two parties are battling, who knows what the outcome will be? No one can.

So the best strategy from a business perspective is to sit on cash, delay the employment of labor and capital and wait to see what happens next. (John C. Goodman)

After all, if you’re deemed “rich” or a “fat cat” that is also a politically incorrect one then you’re just waiting for the hammer to fall.

Is the risk worth the reward?

Basic human nature says no.

And with Class Warfare in full bloom and anti-business Democrats on the warpath for Obama’s Re-Coronation why bother.

Political Cartoons by Gary Varvel

Political Cartoons by Nate Beeler

Political Cartoons by Michael Ramirez

The Dream

You have a dream to build Widgets.
You don’t have the money. But you start small. Just you.
Long, Long hours. Not making any money.
Owing people lots of money.
But you believe.
You work hard.
People start buying your Widgets.
More and more every year.
You get to the point where you need to hire someone else.
You continue selling. Working many long hours.
Your life is your business. it’s all about your Widgets.
But people Like your Widgets.
People buy more of your widgets.
You need more production space so you expand.
People buy more of your widgets so you hire more people and not just to make your widgets.

You need a receptionist, an accountant, suppliers, and more.
You get big enough to start selling your Widgets outside of your immediate neighborhood.
So you expand. You hire more people.
You even open a 2nd location, then a 3rd and more.
You are successful. It feels good. But it’s very hard work.
You now have hundreds, maybe even thousands of people depending on you and your widgets.
You have retail space that costs money.
You have taxes. You have regulations.
But you’re doing fine.
You continue to grow. You hire more people to help with making and selling even more Widgets.
You and the people you employ are successful.
People really like your Widgets. But now yo’re big enough that the other Widget makers notice you so you have to step up your game to survive — Competition.
But there is enough of a market for your widgets, you work hard, you carve out your place.
You hire more people.

Then the economy goes down. People aren’t buying your widgets as much as they used to. Not because of a bad product, just because they fear for their own survival.
So your buisness starts going down. You have to cut where you can to keep the jobs you have.
You can’t just keep on spending more and taking in less.
To keep the dream you have you have to prune the tree to keep it from dying.

But then the Democrats come along and call you an “evil” “rich” person who exploits people and make money to be greedy.
They demonize you as a greedy “fat cat”.
They want to take even more of your money so that they can give it to their people. But they aren’t “greedy” like you. They just more and more of your money.
They pass regulations that hurt your business.
They are endangering your people. Their jobs.
They don’t care because to them it’s all about “fairness” and their people.
If you don’t cut something you won’t be able to make it.
You have to turn a profit in order to re-invest money into the business. To feed your family.
The socialist Democrats call that being greedy. Too much profit (defined by their own nebulous and ever changing whims on  the winds of fickleness) is evil.
The economy is down.
People aren’t buying your widgets like they used just because they have other things they have to buy first or bill they have to pay first.
You have bills to pay also.
The Democrats continue to demonize you.
The economy continues to go down.
Now regulations and the costs to comply with them are going up.
You can either continue losing money or cut somewhere, possibly jobs.
If you cut jobs and shrink the money tree so that the roots survive you’ll be demonized for that too. If you continue losing money eventually the tree itself will die.
Tough choices.
The people are buying less.
You’re selling less.
But you are demonized for not hiring more people.
But if you hire more people, you will lose even more money because the Government have not only piled more regulations that cost money on you, they have “reformed” the Health Care plan you have been paying FOR your employee generously out of the profits of the business even when it’s slow, and now the costs are even higher.
But they don’t care. You’re just a one-dimensional villian.
And if you hire more people and start to get more successful the Democrats will demonize you  as a greedy “rich” person anyhow and want to take even more of your money.
So if spend more money to hire people the Democrats want to tax and take more.
If you don’t hire more people you’re just a greedy rich person.
People are not buying your widgets like they used to because they can’t afford them like they used to.
But don’t worry, it’s all your fault!!
You had a dream. A dream of making a Widget others would appreciate.
That grew into a business others could thrive from.
Now, all you have is your damned if you do and damned if you don’t.
You continue to struggle to keep the dream alive.
The Democrats just call you greedy and demonize you for being successful at it so you must do it against their constant barage of criticism, taxes, and regulations.
You have other people depending on you.
But you’re just a greedy capitalist.
You aren’t supposed to care.
You’re just supposed to be a miserly scrooge who just wants the buck and nothing else.
The people who are depending on you for their jobs, their bills, their dreams you’re not supposed to care about them because you’re just a heartless capitalist Widget maker.

But you’re supposed to hire more people so the socialists can tax you more and call you a greedy capitalist and take even more tax money. The money that you can’t use to make your business  better and make your employees lives better,or even hire more,so they can give it to their slacker constituents who have been told they are entitled to your money because you “have enough” and it’s “fair”.
And besides they vote for the Democrats to give them more of your money.

And if you protest. Well, they have their apparatchik media as weapon against you.
After all, you’re just a greedy, capitalist Widget Maker.
They are Social Justice.
So what if making things worse is suppose to make them better.

So you guard your resources so that the tree of life that is your dream doesn’t die.
Now, they say you’re “hoarding” your money.
That’s evil.

So if you hire more people you can’t afford they will tax you more so you lose more money.
If you don’t hire more people and protect what you have, you’re a greedy capitalist hoarder.

Maybe it’s time to just chuck the whole dream in the bin!
And forget about all the people who depend on you.
Not just your employees.
Your sales team in the field. The advertisers. The accountants.Your parts suppliers.
The mall owners who rent you space. The warehouse space you pay for.
the Drivers for your trucks.
The shop owners of your locations.
The city & state who tax you.
The Electric company who supplies you power.
The people they employee.
The dreams they have.
The stuggles they have.

Just chuck it all.
Is your Dream worth all this hassle??

If it is, the Democrats will hate you more and want even more of your money to feed the  people who’s only dream is to take your money “for free” and to continue to take more.
They are the drug addicts and prostitutes on the corner that make your neighborhood seedy.

But they are categorically not greedy!

Oh, and you’re a greedy capitalist pig either way.
If you’re successful they want more.
If you’re struggling, they want more.
If you’re failing, they don’t care. They want more.
And if you fail, well you were just too greedy.

But if you fail, it’s not just you. It’s all the other people who lose also.
So is failure a better option than success, hoping that someday success will be rewarded rather than punished??
So is taking your Widgets and going away until the Winter of Liberal discontent is over?
Good Question.
Because, for them it will never be over.
But for you, you have to survive.
For others to thrive you have to survive.
Even if that makes you a greedy capitalist hoarder pig.

Because after all is said and done, The flame of the Dream must not die.
The American Dream.
Take an idea. Make money.
Give People what they want and you can make more dreams come true and enable other people to pursue their own dreams.
Become a Success.
From Nothing to Something.
from Ramen to Success.
Whatever that success is to you.

But if you do, the Liberals will be right their with their drug addicts, pimps, and

prostitutes to take a piece of the action for themselves.

So is it worth it?
Hell yeah!!
But can you survive, that’s a question that has no answer.
We are only a brief candle in history to begin with.
Survival is a day to day struggle.
But a dream keeps hope alive.
But if you’re only dream is to take from others, then that dream is a nightmare.
And the road to hell is paved with good intentions.
So be careful.
Wishes are not always horses, sometimes they are horsemen.
But most of the time Wishes are Dreams and Dreams can come true. But not without lots of hard work, sacrifice, and challenge.
That’s what makes life worth living.
No matter how long or short it is.

But if a successful Widget maker can pass down his legacy to the next generation who can keep it going then you have a dream passed on, not just for the Widget Maker, but for the world and history and generations of people who benefit from that single dream.
And that’s worth fighting for.

And your time starts NOW!

p.s I have a dream. I may not be rich. I may not employee people. I may not make world-famous Widgets. But I have a dream.

So why do Liberals want to ruin it for their own greed?

I think you have your answer.

The Circle of Life continues.

Charlie Sheen Economics

Political Cartoon

Hollywood Actor Charlie Sheen was rushed to the hospital yet again after yet another drugs,sex, and booze binge.

Kinda sounds like the folks in Washington D.C. to me.

And to an extent the American people, who have been trained by Washington D.C. to live the high life and expect dependency.

So you have wild, crazed spending binges likes the last 10 years really. Both Obama and Bush 41. Both Republicans and Democrats. It’s just that the Democrats have partied heartier and faster than the Republicans did.

Much higher debt in a much shorter time frame.

The “suitcase full of drugs” was spending. Spending to advance one’s ideology, but most spending to pay off dependents, make more dependents and to buy votes for their re-election so they can do it all over again.

That’s where the Prostitutes come in.

Unions, Lobbyists, and the “advocates”.

But the Congress Men and Women are also Prostitutes for the money

The Money leads to the power and the power is the real drug of choice in Washington.

Just look at Deposed but still defiant Queen Pelosi and Prince Harry Reid.

Harry Reid’s defiant thumb in the eye about earmarks, another drug of choice for buying off the American people, where he will continue doing them because that’s how he got elected in the first place.

Dance with the Whore that got you to the party and then “Party on Dude”.

The Porn: That it has no consequences  so you can just watch it continue and view it from a far and that we can’t change it now and any who dares is just a “racist” “extremist” “teabagger”.

Then there are the American people, who are the co-dependents (and in the case of ObamaCare the forced dependents) in this equation. (of which now Over 700 waivers have been granted, more on this in another blog)

41% of people in a recent Rasmussen poll said it was Ok to spend even more on Education and Infrastructure even after all this. Denial is strong with these folks.

We have spend enough. The good times have rolled by. Get over it.

They have come to expect over the last couple of generations that the government will in fact take care of them when they get old and retire so no need to plan ahead, let’s just party like it’s the Summer of ’69.

And every time some tries to inject some sanity into the proceedings they are crucified by the addicts in Washington and the dependents in the heartlands.

But the party is going to end, whether anyone likes it or not.

There will be an intervention and pain now, or there will be massive and prolonged pain later.

As the old Fram air filter commercials of my youth would say, “You can pay me now or you can pay me later”.

It’s time to pay for the Sex, Drugs, and Rock n’ Roll.

And whether you like it or not is IRRELEVANT.

Thing of it this way. You got a credit card. You maxed it out so you got another credit card and you maxed it out and another and another.

Now all you can do is pay the minimums because you have so much debt that you can’t see anything else.

That’s where the US is right now.

To put $14 trillion in perspective, our national debt is larger than the total economies of China, the United Kingdom, and Australia combined.

If our Debt was rank as “an economy” it would be #30 in the world of nearly 300 nations!!

Just how far in debt are we? Find out below.

Current debt: 14,059,409,159,678.42

http://www.treasurydirect.gov/NP/BPDLogin?application=np

So do you think politically safe nibbles around the edges (Republicans) or Politically slick slogans (Democrats and their “freezes”) will staunch this bleeding?

Or are HARD, politically unpopular choices needed. By both the Political Class, their Drug Dealers, Pimps, Whores, and Prostitutes and the the American people.

Denial is not an option anymore. The Credit cards are maxed out.

The Party is over.

The Hangover and DT’s are going to be pain like you never knew.

But the alternative is that Charlie Sheen and the Charlie Sheen economics becomes Anna Nicole Smith or River Phoenix.

Personally, I want to live!

How about you?

Political Cartoon

Political Cartoon