~ Where the Sun Will Never Set on Our liberty ~
Raising the Minimum Wage and Lowering Jobs
The problem With Raising the Minimum Wage is not the concept. Like all things, we all want more. The question is the normal one - where does the money come from? When the left speaks of capitalism, just like Obamacare, just like Benghazi, just like Roe V Wade (2 lies - Ms. McCorvey was not raped and did not get an abortion - she now says), and like most else it is just more lies out of Washington.
What are the two big lies regarding capitalism? They are
1. Every business makes windfall profits
2. It is trickledown economics where the business owners make big bucks
Okay. I have not been everywhere. But I do know about 20 P and L statements from companies. I also know that none of those 20 that fit the above claims. Could somebody be making windfall profits? Likely. But it is not a big number. I have not been everywhere. But after other jobs, I began in a $30 billion a year sales Fortune 500 company at the lowest level engineering level. Over time I became a VP, and then left there and became a Sr. VP in a $200 million a year startup, and after that started our own family business with stores that almost grossed $1 million a year in sales. So, I have not been anywhere. But Obama, to my knowledge, has been nowhere in industry. And some of his economic advisors also have not had normal jobs. I should also admit that after a time I was considered in the two large companies something of a problem solver. So, yes, I often found myself in the problem areas, which I preferred. But let me give some real situations. And yes I fixed some things, but some places I could not fix.
The Fortune 500 company sent me to England since the division there was a billion dollars a year in sales and yet was losing $100 million a year. I was the first one sent to fix it, but thank God, they did send others. Okay, so now, if a business is losing $100 million a year, is that what people call windfall profits? If so, this discussion is over right now for me. What does trickledown economics mean when the company is losing huge sums of money? How does raising the minimum wage make sense? And yes WE did fix the place, but not by picking on the people. We designed a new product that was far better quality for less money. We also had people trying to reduce the cost of the current product without losing quality. If someone calls this windfall profits, and cheating employees, then I am baffled.
Leaving the Fortune 500 company, I was sought out by a small $200 million a year sales start up as a Sr. VP. But stupid me, I should have seen they were in trouble when I was walking in. The company was based on $200 million in sales which is what the Sale VP promised. But they were really only $20 million in sales. They were off by a factor of 10. Windfall profits anyone? Killing the well paid employees by trickledown economics? No, the reality is that the investors, whom the left calls scum, lost over $200 million. I recall the CEO asking me to tell the Board that losing that money was really okay. Honest. My skin got splotchy from stress. The left to me is beyond stupid. I was able to cut their costs by a factor of 3 because they made dumb outsourcing decisions - to too many companies with too many bad deals. I instead got one great corporate partner with a far better deal. Well, I had some past knowledge in that business. I also got great help from a few great people like the second highest Finance guy who was a good negotiator. But a factor of 3 does not fix a factor of 10 off. And so I was not the first person to go, the Sales guy who claimed $200 million per year in sales was. But I lost my job there as well as the CEO and the CFO and many others.
After that, my family started our own store business. We had two stores selling cellular phones and after three years got to just under $1 million in sales per years. But that money all went to the employees, to the government, to rental and other expenses. We did make a small profit after the three years, but just enough to pay bills. I never paid myself once in 5 years, not even a dime, though I worked most days, did the P and L statement, the balance sheet and was in the middle of most Finance and Legal stuff. So me, one of the people at the top was paid zero for all five years. I really do not want to hear about windfall profits or trickledown economics. Our emplyees were all paid - always - and more than us. Since they thought taking out the garbage was beneath them, my wife and I would take it out. And we some days bought everyone lunch. Well, after a brief profit, the never ending Obama recession where he was shooting job creators took out first the major supplier we were contracted with. They cut our commissions about 20%. Let me explain. If you are just barely making profit, a commission cut of 20% says you go immediately to 20% loss. The math is that simple. Since we were ethical, we kept with our obligations and took the company down slowly to try and not hurt our employees or default on our mall contracts. But yes, over time, the 10 employees we had, including us, all lost our jobs ... apparently due to windfall profits. Since my wife and I kept to our mall rental agreements and agreements with employees, we lost most everything. Business, house, life savings, job. I guess that is trickledown economics in the age of Obama. Our thanks for trying to hold together pay to our employees and keeping our contracts and draining our retirement money was that the government wanted to tax us $72,000 that year. So, you lose everything and get a $72,000 tax? Well, we got better tax people. But even moving things around, the government still hit us hard during the year we lost everything. So I also do not want to hear about government fairness.
And as I said, it was not just us. I knew a number of other business people and their situations. One big company that was trying to hire me went out of business. My younger brother's company that had gotten through the Bush recessions pretty much died in the age of Obama and now my younger brother, also a VP, works only 2 days a week. He does consulting so his family can eat. The largest factory in our area where I live now is going to Costa Rica since they can no longer afford Obama. Small business owners talk. Many told me they were losing money. Many like us lost their stores and their houses due to "windfall profits." One nice lady of Chinese ancestry ran a beauty salon and haircut place. She told me that for years, her employees were paid but never her. More trickledown economics. In that plaza where we both were, at least 50% of the stores died in the age of Obama. That plaza and two other plazas near us went out of business and the plaza owners also lost everything. I ran into the owner of two of three of them in a drug store. We were still on good terms, having lost everything both of us. He was looking for work. Windfall profits? The Chinese ancestry lady who owns the beauty parlor now says that government clowns come in each month and finds something wrong and fine her hundreds of dollars. She runs a clean place. That is ... beyond disgusting. And then we get to hear the total crap on our TVs from liberals about windfall profits and trickledown economics. And of course ... "We did not build that business. They did."
Of the 20 company Profit and Loss statements I knew of, the largest profit of any of them was 5%. That was Motorola by the way. As a VP I got to see their books. And if a president has 5% inflation for the US, then they and their investors make nothing. But at the high point Motorola employed 150,000 people. Now due to windfall profits and trickledown economics, that company is mostly gone and sold out, and most of the people lost their jobs.
And the left continues to scream their hatred of capitalism! How evil those people are! Wait ... a business still has its lights on ... get it!
I would guess some on the left with brain damage are dancing in the streets with all of these businesses going out of business. And by the way - anyone can use simple math and figure out that the economic woes of the 2008 recession were that 20% of US businesses died - and they and their employees lost most everything and stopped paying taxes. It is pretty simple really. Government income is simply the number of people paying times the amount of taxes. The taxes did not change overnight. That means the number of businesses and people lost their businesses and jobs. Simple math, that eludes the left. Let me guess ... they are dumb on purpose. No one could be that dumb. Companies are not dying and leaving due to windfall profits. And if someone does think that ... don't do the mob thing ... instead start a business and show us all how it is done with unions and using no oil and giving huge amounts to government. Go show us how it is done. I have started four businesses now. All were tough and long hours for me to even get paid a little. I suggested to a liberal once that he do what he claims we should do - start a business and do it the Obama way. He got mad. He knows he cannot do it.
Yep, just more lies. I do not understand why anyone listens to these clowns anymore.