Thats a bit extreme. It would go from $4.26 to about $9 flat for a breakfast biscuit and hash brown. You cant raise a businesses overhead without it reflecting at the register. These people who have never run a business will ever understand this. I suggest they open a simple little lemonade stand and operate on out of pocket cash the best they can until they make enough profits to cover their initial investment and increase their production. This will require longer hours and more supplies, but as long as they produce a good product, provide decent customer service and demand continues to grow, so will their business. Now enter the government. Youre required to get a food license, vendor permit and report profits to be taxed. Now enter your hired staff, you pay them minimum wage to take the orders, dispense the drinks and keep the customers happy. Now enter a 50% mandatory wage increase. Your profits are all gone. You can fire some staff and ask you remaining staff to pick up the slack left from the vacant positions or you can increase the cost to the consumer to help compensate for your added expenses. Now enter your suppliers. They were hit with the same hikes you were and have to either cut staffing a spread the responsibility around to their remaining employees or raise their prices to you to compensate for their loss of profits. Again, youre out profits and have to choose to cut jobs or raise your prices yet again. By now, your customers are expecting fast, friendly, clean, intelligent service as well as a bad assed glass of lemonade. Failure at either is disaster for your business. Now enter the bottom line, when your lowest skilled and lowest paid employee makes more than you while working half the hours you do, whats the point in staying in business? You started it, developed it, grew it and got it to a point where you could offer jobs to people who needed a job. The government didnt do jack shit but regulate you and show up with their hand out. Why stay in business when you could work for someone else making more money, working less hours and have none of the headaches until your new boss gets to the same point and closes up shop due to lack of profitability and starts looking for a job right beside you working for someone else. This cycle continues until unemployment reaches 20 million and welfare recipients reaches 50 million because there arent enough jobs and its not profitable to start a new business anymore. Welcome to 0bamanomics 101, where you have to give up your piece of pie so someone else can have more until no one gets any pie at all, whether they bust their ass for it or not.
Posted on: Thu, 30 Jan 2014 10:44:09 +0000
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