Take Republic Windows & Doors of Chicago, where being out of money and out of paying customers apparently does not give a business the right to shut down. Nor does it give that business’ bank the right to withhold credit. According to the unions, Jesse Jackson and the Governor of Illinois (yes, THAT governor), this company must continue to pay its employees salaries and benefits.
First, let me say, I own a small consulting business. I have two full time employees (not including myself) with about eight others part time. The part timers are easy—the full timers are more tricky as you’ve got to provide them benefits and have more obligations to them. I believe the issue with the Republic Windows (RW) workers, was benefits the workers had already earned (like vacation time) and things they were owed under a contractual agreement (like severance pay). When a business (any business) hires employees, they have an obligation to do proper accounting and make sure $$ is put a way to meet their obligations.
So, when a worker acrrues vacation, the business must put $$ away to cover it. If severance pay is owed, the business must put $$ away to cover it. An account can be created for these obligations and should be funded in case things go south. RW clearly did not do this, but it should have. And you should not touch that account, especially if things are going bad.
In short, it has nothing to do with the Government. It has everything to do with the Contract you make with your employees and honoring your word. Anyone remember honor?
And I should also add that there are LOTS of benefits to business ownership. Its not a one way street where business just gives to the Government. Lots of businesses, especially small ones, get lots back in terms of tax breaks, credits, low interest loans, etc. Most states do a lot to encourage small business.
And, business owners make both salary and profits. Its also nice to be the one in charge. It it extra work and more responsibility—sure. But if you don’t like it, do something else.