Posted on 07/02/2009 6:03:38 AM PDT by Red in Blue PA
America isn't hiring precisely because of government policy. Small business owners, who are usually the first into and the first out of the job pool, are standing by the fence and watching. They are paralyzed by regulatory uncertainty. If they hire someone who ends up doing poorly, will they be able to fire that person? Will they have to pay their health care bills after they've been terminated? If so, for how long? Who will pay for all these stimulus checks? If it will turn out to be small business, why would they hire instead of keeping costs low to prepare for the big tax bill? Where will the market move? Are you in the right business or are your clients in a politically disfavored industry? Are your clients in health care (being nationalized), autos (already nationalized), banking (somewhat nationalized) or any energy production process which uses carbon (pulverized)? Until you know, you don't grow, and until you grow your market, you don't grow your payroll.
Jobs aren't languishing despite the government's best efforts. They're languishing because of them.
(Excerpt) Read more at cnbc.com ...
It takes money to hire, and you can’t get operating loans right now. Any business of any size has to have a revolving credit line, and they’ve dried up.
Companies will do more with less, even to the point of turning down business, since they just can’t afford to tool up and expand right now.
As a small business owner, I am waiting until the dust settles before taking on unfunded mandates called employees at this time.
Want Ads do not mean jobs, in most downturns you start seeing a lot of pay for service ads being placed to look like a job offering.
Jerry Bowyer understands it, but, unfortunately he buried the important information at the end of analysis that seemed confused and somewhat pointless. The first half seems to indicate things are getting better, when the opposite is true...
hh
“The auto/bank bailouts cum nationalizations were supposed to be about saving jobs, not ‘Wall Street’. So given two record breaking stimuli within two years, why isn’t America hiring?”
He sounds shocked that the politicians bamboozled everyone.
“It takes money to hire, and you can’t get operating loans right now. Any business of any size has to have a revolving credit line, and they’ve dried up.”
And, of course, with the twin meataxes of higher taxes and strangling regulation hanging overhead.. hell, why should they?
I would never even consider starting a business in this climate, where bailouts are handed out like candy and failure is rewarded.
Who would?
I think Directive 10-289 will fix this....
hh
No one trusts the President and Congress. Period. If a business did what they have done, it would be closed by the end of the day. Our government seems to believe that they can defy the laws of economics and common sense. Perhaps the people who voted for them are so dumb as to believe their inane acts will work, but the people who actually DO make this country work, understand.
It’s the uncertainty more than the money, I believe...
Yes, credit is a real problem now, as well.
Both are caused by having authoritarian socialists in positions of power.
Some people speak of “Going Galt” a reference to the novel “Atlas Shrugged”.
Small business has actually “gone Galt” in that, while not ceasing operation, they are deliberately restricting the growth of successful businesses in SELF DEFENSE.
A business, of any size, thinks in terms of YEARS, government and politicians think in terms of the “next news cycle.”
The small businessman does NOT fear the intrusion of the criminal holding a .45, rather he lives in abject fear of the BUREAUCRAT wielding a .357 CLIPBOARD, armed with a full magazine of regulations. He knows that the BRILLIANT decision of today could be turned, at the stroke of a political pen, into tomorrow’s disaster.
As a result..he has “gone Galt”
We won’t hire because what we usually get is spoiled ex-union workers that won’t perform an ordinary manual labor job.
Also if we can manufacture an item with 50% less manpower for something thats only selling half as often as usual it means we can lay off extra people.
Most people coming around looking for work have only one maybe two good skills, problem is we don’t have enough demand for one particular skill, they need to have even some basic skills like welding, carpentry, some mechanics. But nope, all I see is people brought up under the impression a high paid college diploma at ONE thing will get them a job.
Not in my company it won’t.
Raising some excellent points. When did Bowyer go to work for CNBC? He left his local Pittsburgh talk-show and job with a regional Conservative think-tank some time ago due to health issues.
I agree. I’ve seen a (small) number of people recently opening businesses in store fronts where the previous occupant was driven out of business. I drive past and say, “You’re a braver man than I. Or stupider.”
I think you nailed it.
We have a Socialist, America hating, inexperienced narcissist as President, backed by a bunch of corrupt-to-the-core politicians in Congress who are more interested in their own reelection, power, money and sex than actually serving the people who elected them. How can anyone with half a brain actually look at our so-called Government and not shake their heads in shame that these bunch of pathetic pre-teens have been put in charge of ANYTHING by ANYONE?
Because the leftists have won.
Too many youth are undereducated, have an entitlement mindset, a non-existent work ethic.
Looming tax hikes discourage long-term planning & investment.
The non-elected (bureaucrats & judiciary) ride roughshod with onerous rules and second-guessing, (especially re:
Private property and contract law)
Need I continue?
We need segregation.
Ideological segregation. Let them wallow in the throes of their ideology. Let us prosper in ours.
All of the replies to this post are as True as can be. You could see this all coming when manufacturing started leaving the US. Manufacturing has ALWAYS been the backbone of the USA. When the government started giving tax breaks to companies to send work overseas I knew government did not have a clue about business in the USA. They had to get a government job to justify daddy pi$$ing all that money down the drain for that Liberal basket weaving degree from the Liberal ding bat school. GOD HELP THE USA
For any society to function, it must have something tangible to sell. The service economy is nice, but we can’t all work at Mickey D’s.
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