This Is Why There Are No Jobs in America
goingbroke
Posts: 1,410
I'd like to make you a business offer.
Seriously. This is a real offer. In fact, you really can't turn me down, as you'll come to understand in a moment…
Here's the deal. You're going to start a business or expand the one you've got now. It doesn't really matter what you do or what you're going to do. I'll partner with you no matter what business you're in – as long as it's legal.But I can't give you any capital – you have to come up with that on your own. I won't give you any labor – that's definitely up to you. What I will do, however, is demand you follow all sorts of rules about what products and services you can offer, how much (and how often) you pay your employees, and where and when you're allowed to operate your business. That's my role in the affair: to tell you what to do.
Now in return for my rules, I'm going to take roughly half of whatever you make in the business each year. Half seems fair, doesn't it? I think so. Of course, that's half of your profits.
You're also going to have to pay me about 12% of whatever you decide to pay your employees because you've got to cover my expenses for promulgating all of the rules about who you can employ, when, where, and how. Come on, you're my partner. It's only "fair."
Now… after you've put your hard-earned savings at risk to start this business, and after you've worked hard at it for a few decades (paying me my 50% or a bit more along the way each year), you might decide you'd like to cash out – to finally live the good life.
Whether or not this is "fair" – some people never can afford to retire – is a different argument. As your partner, I'm happy for you to sell whenever you'd like… because our agreement says, if you sell, you have to pay me an additional 20% of whatever the capitalized value of the business is at that time.
I know… I know… you put up all the original capital. You took all the risks. You put in all of the labor. That's all true. But I've done my part, too. I've collected 50% of the profits each year. And I've always come up with more rules for you to follow each year. Therefore, I deserve another, final 20% slice of the business.
Oh… and one more thing…
Even after you've sold the business and paid all of my fees… I'd recommend buying lots of life insurance. You see, even after you've been retired for years, when you die, you'll have to pay me 50% of whatever your estate is worth.
After all, I've got lots of partners and not all of them are as successful as you and your family. We don't think it's "fair" for your kids to have such a big advantage. But if you buy enough life insurance, you can finance this expense for your children.
All in all, if you're a very successful entrepreneur… if you're one of the rare, lucky, and hard-working people who can create a new company, employ lots of people, and satisfy the public… you'll end up paying me more than 75% of your income over your life. Thanks so much.
I'm sure you'll think my offer is reasonable and happily partner with me… but it doesn't really matter how you feel about it because if you ever try to stiff me – or cheat me on any of my fees or rules – I'll break down your door in the middle of the night, threaten you and your family with heavy, automatic weapons, and throw you in jail.
That's how civil society is supposed to work, right? This is Amerika, isn't it?
That's the offer Amerika gives its entrepreneurs. And the idiots in Washington wonder why there are no new jobs…
Seriously. This is a real offer. In fact, you really can't turn me down, as you'll come to understand in a moment…
Here's the deal. You're going to start a business or expand the one you've got now. It doesn't really matter what you do or what you're going to do. I'll partner with you no matter what business you're in – as long as it's legal.But I can't give you any capital – you have to come up with that on your own. I won't give you any labor – that's definitely up to you. What I will do, however, is demand you follow all sorts of rules about what products and services you can offer, how much (and how often) you pay your employees, and where and when you're allowed to operate your business. That's my role in the affair: to tell you what to do.
Now in return for my rules, I'm going to take roughly half of whatever you make in the business each year. Half seems fair, doesn't it? I think so. Of course, that's half of your profits.
You're also going to have to pay me about 12% of whatever you decide to pay your employees because you've got to cover my expenses for promulgating all of the rules about who you can employ, when, where, and how. Come on, you're my partner. It's only "fair."
Now… after you've put your hard-earned savings at risk to start this business, and after you've worked hard at it for a few decades (paying me my 50% or a bit more along the way each year), you might decide you'd like to cash out – to finally live the good life.
Whether or not this is "fair" – some people never can afford to retire – is a different argument. As your partner, I'm happy for you to sell whenever you'd like… because our agreement says, if you sell, you have to pay me an additional 20% of whatever the capitalized value of the business is at that time.
I know… I know… you put up all the original capital. You took all the risks. You put in all of the labor. That's all true. But I've done my part, too. I've collected 50% of the profits each year. And I've always come up with more rules for you to follow each year. Therefore, I deserve another, final 20% slice of the business.
Oh… and one more thing…
Even after you've sold the business and paid all of my fees… I'd recommend buying lots of life insurance. You see, even after you've been retired for years, when you die, you'll have to pay me 50% of whatever your estate is worth.
After all, I've got lots of partners and not all of them are as successful as you and your family. We don't think it's "fair" for your kids to have such a big advantage. But if you buy enough life insurance, you can finance this expense for your children.
All in all, if you're a very successful entrepreneur… if you're one of the rare, lucky, and hard-working people who can create a new company, employ lots of people, and satisfy the public… you'll end up paying me more than 75% of your income over your life. Thanks so much.
I'm sure you'll think my offer is reasonable and happily partner with me… but it doesn't really matter how you feel about it because if you ever try to stiff me – or cheat me on any of my fees or rules – I'll break down your door in the middle of the night, threaten you and your family with heavy, automatic weapons, and throw you in jail.
That's how civil society is supposed to work, right? This is Amerika, isn't it?
That's the offer Amerika gives its entrepreneurs. And the idiots in Washington wonder why there are no new jobs…
Many successful BST transactions ajia
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mariner67, and Mikes coins
0
Comments
A beautifully concise article on the hidden and not so hidden expenses of having and being an employee today.
Hey, we need another warm body but we're holding off.
<< <i>Why I'm not hiring. >>
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"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
AUGUST 9, 2010
Why I'm Not Hiring - When you add it all up, it costs $74,000 to put $44,000 in Sally's pocket and to give her $12,000 in benefits.
By MICHAEL P. FLEISCHER (Mr. Fleischer is president of Bogen Communications Inc. in Ramsey, N.J.)
With unemployment just under 10% and companies sitting on their cash, you would think that sooner or later job growth would take off. I think it's going to be later—much later. Here's why.
Meet Sally (not her real name; details changed to preserve privacy). Sally is a terrific employee, and she happens to be the median person in terms of base pay among the 83 people at my little company in New Jersey, where we provide audio systems for use in educational, commercial and industrial settings. She's been with us for over 15 years. She's a high school graduate with some specialized training. She makes $59,000 a year—on paper. In reality, she makes only $44,000 a year because $15,000 is taken from her thanks to various deductions and taxes, all of which form the steep, sad slope between gross and net pay.
Before that money hits her bank, it is reduced by the $2,376 she pays as her share of the medical and dental insurance that my company provides. And then the government takes its due. She pays $126 for state unemployment insurance, $149 for disability insurance and $856 for Medicare. That's the small stuff. New Jersey takes $1,893 in income taxes. The federal government gets $3,661 for Social Security and another $6,250 for income tax withholding. The roughly $13,000 taken from her by various government entities means that some 22% of her gross pay goes to Washington or Trenton. She's lucky she doesn't live in New York City, where the toll would be even higher.
Employing Sally costs plenty too. My company has to write checks for $74,000 so Sally can receive her nominal $59,000 in base pay. Health insurance is a big, added cost: While Sally pays nearly $2,400 for coverage, my company pays the rest—$9,561 for employee/spouse medical and dental. We also provide company-paid life and other insurance premiums amounting to $153. Altogether, company-paid benefits add $9,714 to the cost of employing Sally.
Then the federal and state governments want a little something extra. They take $56 for federal unemployment coverage, $149 for disability insurance, $300 for workers' comp and $505 for state unemployment insurance. Finally, the feds make me pay $856 for Sally's Medicare and $3,661 for her Social Security.
When you add it all up, it costs $74,000 to put $44,000 in Sally's pocket and to give her $12,000 in benefits. Bottom line: Governments impose a 33% surtax on Sally's job each year.
Because my company has been conscripted by the government and forced to serve as a tax collector, we have lost control of a big chunk of our cost structure. Tax increases, whether cloaked as changes in unemployment or disability insurance, Medicare increases or in any other form can dramatically alter our financial situation. With government spending and deficits growing as fast as they have been, you know that more tax increases are coming—for my company, and even for Sally too.
Companies have also been pressed into serving as providers of health insurance. In a saner world, health insurance would be something that individuals buy for themselves and their families, just as they do with auto insurance. Now, adding to the insanity, there is ObamaCare. Every year, we negotiate a renewal to our health coverage. This year, our provider demanded a 28% increase in premiums—for a lesser plan. This is in part a tax increase that the federal government has co-opted insurance providers to collect. We had never faced an increase anywhere near this large; in each of the last two years, the increase was under 10%.
To offset tax increases and steepening rises in health-insurance premiums, my company needs sustainably higher profits and sales—something unlikely in this "summer of recovery." We can't pass the additional costs onto our customers, because the market is too tight and we'd lose sales. Only governments can raise prices repeatedly and pretend there will be no consequences.
And even if the economic outlook were more encouraging, increasing revenues is always uncertain and expensive. As much as I might want to hire new salespeople, engineers and marketing staff in an effort to grow, I would be increasing my company's vulnerability to government decisions to raise taxes, to policies that make health insurance more expensive, and to the difficulties of this economic environment.
A life in business is filled with uncertainties, but I can be quite sure that every time I hire someone my obligations to the government go up. From where I sit, the government's message is unmistakable: Creating a new job carries a punishing price.
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Ah, that felt good.
<< <i>want jobs? close the flood gates , buy usa made only ! >>
I agree but sadly, this isn't going to happen for a while, if ever.
<< <i>want jobs? close the flood gates , buy usa made only ! >>
Are you trying to start a trade war?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>want jobs? close the flood gates , buy usa made only ! >>
Besides food, what can you find made in America?
We need to start some where
made in the USA
Sounds great on paper and it's a popular slogan. The fact is that most Americans would not spend the extra money necessary to make this happen. They say they would but when they get up to the cash register they vote differently. They vote with their wallets I would LOVE not to travel 180 days a year outside the US in an effort to design product that Americans will consider properly priced. A lot of products would double in price if not triple if made solely in America. At the end of the day Americans like most people in the world like cheap products. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>I'd like to make you a business offer.
Seriously. This is a real offer. In fact, you really can't turn me down, as you'll come to understand in a moment…
Here's the deal. You're going to start a business or expand the one you've got now. It doesn't really matter what you do or what you're going to do. I'll partner with you no matter what business you're in – as long as it's legal.But I can't give you any capital – you have to come up with that on your own. I won't give you any labor – that's definitely up to you. What I will do, however, is demand you follow all sorts of rules about what products and services you can offer, how much (and how often) you pay your employees, and where and when you're allowed to operate your business. That's my role in the affair: to tell you what to do.
Now in return for my rules, I'm going to take roughly half of whatever you make in the business each year. Half seems fair, doesn't it? I think so. Of course, that's half of your profits.
You're also going to have to pay me about 12% of whatever you decide to pay your employees because you've got to cover my expenses for promulgating all of the rules about who you can employ, when, where, and how. Come on, you're my partner. It's only "fair."
Now… after you've put your hard-earned savings at risk to start this business, and after you've worked hard at it for a few decades (paying me my 50% or a bit more along the way each year), you might decide you'd like to cash out – to finally live the good life.
Whether or not this is "fair" – some people never can afford to retire – is a different argument. As your partner, I'm happy for you to sell whenever you'd like… because our agreement says, if you sell, you have to pay me an additional 20% of whatever the capitalized value of the business is at that time.
I know… I know… you put up all the original capital. You took all the risks. You put in all of the labor. That's all true. But I've done my part, too. I've collected 50% of the profits each year. And I've always come up with more rules for you to follow each year. Therefore, I deserve another, final 20% slice of the business.
Oh… and one more thing…
Even after you've sold the business and paid all of my fees… I'd recommend buying lots of life insurance. You see, even after you've been retired for years, when you die, you'll have to pay me 50% of whatever your estate is worth.
After all, I've got lots of partners and not all of them are as successful as you and your family. We don't think it's "fair" for your kids to have such a big advantage. But if you buy enough life insurance, you can finance this expense for your children.
All in all, if you're a very successful entrepreneur… if you're one of the rare, lucky, and hard-working people who can create a new company, employ lots of people, and satisfy the public… you'll end up paying me more than 75% of your income over your life. Thanks so much.
I'm sure you'll think my offer is reasonable and happily partner with me… but it doesn't really matter how you feel about it because if you ever try to stiff me – or cheat me on any of my fees or rules – I'll break down your door in the middle of the night, threaten you and your family with heavy, automatic weapons, and throw you in jail.
That's how civil society is supposed to work, right? This is Amerika, isn't it?
That's the offer Amerika gives its entrepreneurs. And the idiots in Washington wonder why there are no new jobs… >>
Only one thing, they are not idiots. They know exactly what they are doing. That makes them something other then idiots. Wait, you'll probably see the supporters soon.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>
<< <i>want jobs? close the flood gates , buy usa made only ! >>
Are you trying to start a trade war?
How low do American wages have to be to compete with 20 cent an hour labor in factories owned by the communist Chinese government?
An engineer I work with summed up this strategy nicely: "Keep it small - keep it all"
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<< <i>it's a mess, no doubt >>
Hope and change or is that hope for a change?
Fred, Las Vegas, NV
<< <i>
<< <i>
<< <i>want jobs? close the flood gates , buy usa made only ! >>
Are you trying to start a trade war?
How low do American wages have to be to compete with 20 cent an hour labor in factories owned by the communist Chinese government? >>
If we stop buying from the Chinese, how are they going to be able to continue to buy our debt?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Oh man, how true that is. Gave me a good laugh. Sad tho, ain't it? Gonna stack some 'mo this week.
<< <i>If we stop buying from the Chinese, how are they going to be able to continue to buy our debt?
Oh man, how true that is. Gave me a good laugh. Sad tho, ain't it? Gonna stack some 'mo this week. >>
Don't worry. With the hyperinflation coming we'll be paying back the Chinese with greatly inflated dollars.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>
<< <i>
<< <i>want jobs? close the flood gates , buy usa made only ! >>
Are you trying to start a trade war?
How low do American wages have to be to compete with 20 cent an hour labor in factories owned by the communist Chinese government? >>
Someone please enlighten me here.
I hear this argument used alot.
If you stop importing foreign goods there will be no competition.
I don't see where it matters if they work for .00001 cent an hour.
<< <i>
<< <i>
<< <i>
<< <i>want jobs? close the flood gates , buy usa made only ! >>
Are you trying to start a trade war?
How low do American wages have to be to compete with 20 cent an hour labor in factories owned by the communist Chinese government? >>
Someone please enlighten me here.
I hear this argument used alot.
If you stop importing foreign goods there will be no competition.
I don't see where it matters if they work for .00001 cent an hour. >>
15 million+ unemployed in USA. That's why it matters!
<< <i>
<< <i>
<< <i>
<< <i>want jobs? close the flood gates , buy usa made only ! >>
Are you trying to start a trade war?
How low do American wages have to be to compete with 20 cent an hour labor in factories owned by the communist Chinese government? >>
Someone please enlighten me here.
I hear this argument used alot.
If you stop importing foreign goods there will be no competition.
I don't see where it matters if they work for .00001 cent an hour. >>
Spot on Flatwoods. I won't even comment on the twenty cent an hour statement.
FWIW- The fact is that Chinese wages are increasing exponentially (albeit still median globally low) and those wishing for higher prices will be downright giddy. US companies doing business in China (like most of the S & P 500) will struggle on the go forward. The entire globe is counting on double digit China growth so something has to give.............rut roh............MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I made mine FUBAR the rest of the USA & future generations
I feel your pain. I really do. We put overselves in this mess and we must be the ones to pull ourselves out of it. I don't think it will be in manufactoring though. We were VERY slouth like in the late seventies and early eighties and we opened the door to Asia to grab our business. The fact is we got fat and lazy on the line, in design and in execution. We produced expensive crap. The world is not going to give us a mulligan.
Since Frank opened the door, I'll walk through. The fact is that China is more capitalistic today then the current US adm.................I'll stop short, I like this thread. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I live in the deep south. Textile & manufacturing jobs gone lost forever.
A family of good friends are loosing their jobs. All work/worked for Russell clothing/sporting goods.
I have 30 years work experience in construction & manufacturing. I do get very fired up when trying to get my point across on this subject.
I'll go drink a cold
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i><< want jobs? close the flood gates , buy usa made only ! >>
Sounds great on paper and it's a popular slogan. The fact is that most Americans would not spend the extra money necessary to make this happen. >>
I would, and I do. The real problem is, I often can't find a USA made product no matter how hard I try (regardless of price).
Last year I tried to find a USA-built drill press. I went to 8 major local stores - every single one was made in China. I refused to buy any of that junk.
I went to a pawn shop and finally found an older one that wasn't made in "China" ... it was made in "Taiwan". I had to settle for that one.
<< <i>At the end of the day Americans like most people in the world like cheap products. MJ >>
I am so fed up with Chinese junk products and their horrible (cheap) quality. It costs me FAR MORE to deal with and replace lousy equipment
than it does to pay more for quality equipment up front. I bought a large air compressor at a large home supply store. It said "assembled with
pride in the USA" on the side of the tank. Turns out, as expected, the actual air pump was a piece of Chinese crap and it just blew a corner off
the compressor head for no good reason. My production was down for a couple days while I tried to get something to replace it. I finally got
a decent-quality Brazillian-made pump and put it on my "USA" tank.
And to top it off, some rip-off low-quality (copyright-infringing) couterfeits of some of my products recently came out of China.
Regarding the jobs issue, I couldn't agree more with the reasons given. The burden of paperwork, regulations, and taxes is absolutely a nightmare.
I currently have no employees, but I REALLY need one or two. But there is no way in hell I can or will hire anyone with those burdens attached.
My list includes footwear, ceiling fans, light bulbs, furniture, and even their nails aren't worth pounding with a hammer.
DCarr, the answer as I see it is to offer sweat-equity or go with private contractors. You might find someone who wants to earn it, but that's not a guarantee - I'm just guessing.
I knew it would happen.
Knowledge is the enemy of fear
Point of reference- I design women's shoes for my main source of income. They can range from $30 retail to $400 depending on how the customer (chain)/wholesale wants them made. They are all made in China. For the $150 and up items they are produced with Italian and German equipment with Brazilian inspectors in a joint venture factory and are made slowly. All the components including the glue come from Europe. I insist on it. An American oversees it all. These shoes are JEWELS. I get orders of 600 prs or less for items like this and they are shipped to Europe and the USA.
The shoes that retail for $30-$50 mostly get made in crappy government factories with cheap a$$ components. We get orders the size of telephone numbers on these and they are ALL shipped to the US as that is where the REAL customer price and demand are. AKA, the price sweet spot. Most women's fashion shoes are ephemeral in nature. As always, you get what you pay for. One does have a choice.
I would LOVE to have these same $150 and up shoes made in the States. The problem is that these same export shoes would be double in price if made domestically and instead of 600 pr orders we would get 120 pair IF that.
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
with changes in law. They'll also need an accounting team to figure out how much
to pay each month and number of others for whom keeping up with government
is a large part of their jobs.
You'll even have to pay to train everyday workers in regulations. Large companies
now have a multimillion dollar payroll before they can make a single widget.
Of course it doesn't help a company's chances of survival if the big bosses get mil-
lion dollar bonuses if they can put it out of business or move the jobs overseas.
At least the rate of job loss going somewhat in the right direction.
Home Sales Drop 27 Percent In July And Things Are Only Going To Get Worse For The U.S. Housing Industry
Home Sales Drop 27 Percent In July
Robert Dye, a senior economist with PNC Financial Services Group, recently told USA Today what he believes the bottom line problem of this housing crisis is....
"Jobs, jobs, jobs"
Today, 14 million Americans are unemployed and millions more are underemployed. Unfortunately, there are not nearly enough good jobs for all of them.
Today it takes the average unemployed American over 8 months to find a job. The number of Americans receiving long-term unemployment benefits has risen a staggering 60 percent in the past year alone.
Things have gotten so bad that according to one recent survey 28% of all U.S. households have at least one person that is searching for a full-time job.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
I've read that they hired 1M people for the census. that would almost directly correspond with the upward blip in employment numbers at the start of the year.
<< <i>At least the rate of job loss going somewhat in the right direction.
I've read that they hired 1M people for the census. that would almost directly correspond with the upward blip in employment numbers at the start of the year. >>
Yeah..but now they're on the unemploment lines....
This is not a donkey or elephant issue. It's a state of our union issue. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>
<< <i>At least the rate of job loss going somewhat in the right direction.
I've read that they hired 1M people for the census. that would almost directly correspond with the upward blip in employment numbers at the start of the year. >>
Yeah..but now they're on the unemploment lines....
And don't forget this nugget: census workers were hired and fired multiple times as each hiring counted as a new created/saved job in the employment numbers while each firing didn't. There was some article/interview with some workers who got hired/fired each week that I read a few months ago, funny numbers.
Here's the googleness: NY Post link
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
Here's a cool video with charts, bikini's and some mainstream media bs
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Nobody pays taxes and are free to hire.
I'll take USA any day, short comings and all. It's sad how people don't realize what we have. Read the book 1776, amazing, even the Hessian soldiers could not believe there eye's when they landed on what's now Long Island.
China is taking a huge loan on it's future with thevartificially cheap labor and no environmental regs. Pollution will kill you.