Quote:
Originally Posted by Golfingnut
I hear you clearly, but I am sure you are wrong. Small business go under due to incompetent owners, not because they pay too much to their employees.
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This is a statement to emphasize your position. You are entitled to the opinion or "feeling" you may have but if you do not have first hand knowledge or experience you are clearly presenting what you think and not what is the reality of small businesses.
You may be right for some percentage of why businesses go under.....but incorrect as a general statement. They are successful for many reasons. When one's margins are decreased because of legislated increases in wage/payroll expenses without any increase in revenue to offset that increase there is no way for the owners to absorb that type of expense increase.
Most small businesses top expenses are rents, taxes and wages. The income before taxes is a fixed amount.....this fixed amount is reduced when arbutrary legislation dictates wages to be paid. To avoid paying employees "too much" the owners then have no choice but to reduce the number of employees or hours worked. Unlike government entities small businesses do not have the luxury of spending more than they have.
As has been staed in another post, as wages go up so do the cost of all goods which in turn increases prices which in turn comes from the customer, including those who benefit from the increased wages to only pay more for what they used to buy.
This is one of those shouting into a windstorm or corner. The above is not intended to try to change anybody's mind about what they want to promote or believe. Just an obligation to represent the reality of the small business owners plight.
Time to move to a differnt subject for me.
btk