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Why the continued depression among employers?

With all due respect to VDH whom I admire, as a long-time business owner who has had as many as 110 people on the payroll (now zero, but more about that later), I'll tell you why there is "depression among employers":

1. Four decades ago, my employees were very well paid, provided with excellent medical benefits and provided with everything they needed in order to do a good job and work in a healthy environment. They worked hard and when an employee didn't perform I fired him/her and the remainder of the staff was relieved to be rid of them too.

2. Over the years, my employees stuck with me through thick and thin. In the thin times, the warehouse staff got together and all cut their hours in order to protect a handful from being laid off.

3. The years wore on and the first noticeable change was that every time we fired someone for cause they sued us, and usually "won" because our lawyers explained that it was "cheaper to settle than fight, even though we might win".

4. Hand in hand with #3, we finally gave up on arguing with the State Unemployment people because no matter how bad a former employee was, they ALWAYS get unemployment benefits, resulting in an INCREASE in our unemployment tax rate.

5. Years ago, when we started our business, we paid for a permit to do business and paid our local, state, and federal taxes. We sent in the forms and paid.

6. Today, during the course of a year, one never knows who will show up at the door, unannounced, present a business card stating they are from government agency (local, state, fed) and informing you that they have the RIGHT to come in and walk through your business. If you argue, they threaten to call the police.

7. During the past 3 decades, more and more of the new-hires have "problems"; addictions, marital, domestic violence, child care, appointments with welfare agencies, you name it.

8. Today, many of the employees (mostly female) don't have male partners because they qualify for government benefits by NOT having a male in the household. As an employer, I had to put up with missed days of work because of appointments with government welfare offices.

SUMMARY: I don't need this aggravation. I, and many business owners I know, have completely restructured so that we operate without any, or very few, employees. It will be a cold day in hell before I would endure having staff again.

3. The years wore on and the first noticeable change was that every time we fired someone for cause they sued us, and usually "won" because our lawyers explained that it was "cheaper to settle than fight, even though we might win".

Along the same lines, a friend is the business manager for a manufacturing company in Massachusetts. As part of the employment process, they require all applicants to take an IQ test. We're not talking Mensa here, just basic math and English.

They've been threatened with "discrimination" lawsuits by more than one applicant who's flunked the test.

Who needs it?

You’ve got that exactly right. I split my business into 2 entities simply to protect the intangible assets from the tangible ones. While that seems backwards (I mean, most people try to protect their tangible assets) the point is what makes my business money are the customers, the trademarks, the products and designs. I don’t NEED to make them myself. And I don’t NEED to make them in California. So I am now set up such that if I ever get fed up, I can shut down my production facility and re-open it in any of the other 47 continental states, or I could simply outsource the production to some other entity. The trademarks, customers, products and designs are still mine, and while they are not the heavy assets they also can’t be taken away, fined, shut down, inspected, audited, burned, flooded, locked out, on strike etc etc etc.

It’s like the old tycoons made their fortunes in rail, steel, oil and gas... now the tycoons make money out of electrons while the heavy equipment people are practically liabilities (like GM or the Railroads or trucking companies). They cost too much; they are too cumbersome; they are hard to liquidate; they are hard to operate; they require lots of people doing hard, sweaty, dangerous work; and when they lose they lose big, etc etc.

It is truly sad - this is why manufacturing is dead in the USA. You nailed it, and I, as a manufacturer, understand it all too well. I want to continue, but it has become markedly more difficult in recent years than 20 years ago. I can’t even begin to tell you how many different licenses, permits and fees I have to pay for every year. I need a permit for a boiler, I need permits for every one of my pieces of equipment... it would be like a shopkeeper having to have a permit for every display in his store. I have to pay for the privilege of using the equipment that makes the products that employ my employees. It’s beyond asinine.