The more people in the workforce, the better for our economy. When unemployment is low, good things happen:
1.) Workers pay city, state, and federal taxes, so the more people are employed, the more tax revenue treasuries receive.
2.) Since these workers need to get to and from their workplace, they pay for public transportation or, in most cases, they drive or carpool to get to work. This involves buying a vehicle or hiring an auto mechanic to keep your existing car in good working order so you can travel safely every day.
3.) They buy clothes for their jobs, pay to have their clothes cleaned, buy food and drinks at stores and restaurants, while buying gas to run their vehicles. These are just a few types of businesses that meet needs and support others, working to pay their mortgages, car payments, children’s education, credit cards, groceries, etc. This is, in essence, trading.
Companies and individuals offer a product or service to solve a problem. Since it would be impractical to buy a new suit every time yours gets dirty, dry cleaners are on hand to solve the problem we all have, “who will clean my dirty suit?” Many people have the problem of “I can’t wake up” every morning. That is why many entrepreneurs have launched into the coffee business. A cup of coffee solves the challenge, millions experience it every morning. Problem solvers can generate very good income when the right marketing techniques are implemented.
So thousands of business owners, making a living providing a service to others, is commerce. The more people earn a living, the more tax revenue floods into the city, state, and federal treasurer’s coffers, funding the services provided by the government. Such as fire department, law enforcement, safe drinking water supply, garbage collection, road safety and maintenance, elderly care, etc. Since everyone benefits from the services provided by all three levels of government, each worker must be willing to give a fair amount to the government for the common good.
And entering the game, providing a service or product to solve someone’s problem, is within the reach of all citizens. Entrepreneurs and people employed by companies can make a very good living supplying products and services to people who are looking for solutions. If you have a product that addresses a problem people are facing, and you’ve learned the right way to promote it, you’ll do pretty well. Again, I remind you that this is available to anyone! Desire, hard work, and a never-give-up attitude are mandatory for those seeking success.
We are going to delve into the fundamental aspect of trade, supply and demand. Let’s say you own the only cleaners in your town. This would be great for you, but not great for your clients. Here’s why: Without a competing cleaner, you can charge whatever you want to clean people’s clothes. Your customers have two options, either they drive to another city to have their laundry done, or they bite the bullet and come to you and your high prices. Not only the high costs, but also the long lines to drop off and pick up your orders.
I’m sure you see what would happen when another cleaner opened its doors in your town. Now there is competition, and this is good for consumers. The lowest priced cleaners, as long as the quality is comparable, will get the most business. So, for the cleaning companies with the smallest market share to survive, they must maintain high-quality service and lower prices. I don’t need to tell you that consumers love low prices; we all do! Anytime you can save money all other things being equal, the consumer wins. This is a very basic example of supply and demand. It doesn’t always work this way, but in most cases, it certainly does.
If you have a highly respected name, or your service is off the charts, then you will have customers willing to pay more. If so, great! The bottom line is that when businesses (big and small) do well, everyone benefits, government treasuries receive a substantial amount of funds to run their jobs, and the economy keeps going.
So when there are a large number of producers (business owners and workers), tax money flows to all levels of government. But what happens when the state and federal government impose excessive taxes and regulations on small businesses (50 or fewer employees) and increase the number of services provided to their residents? A small number of producers and the tax revenues presented are obtained. Businesses cut their overhead costs to maintain profitability. This usually means staff reductions. Layoffs occur (now non-producers), some companies, with small profit margins and small amounts of capital, close their doors, resulting in the evident reduction of tax revenues to the government. This is basically what has happened in the State of California. For several years, a growing number of non-producers and a shrinking number of taxpayers (employees or business owners) have kept this beautiful state on the brink of bankruptcy.
And the California legislature, instead of enacting policies that support the key factor in a well-oiled economy, small businesses, has increased the burden on these businesses in an attempt to compensate for failed or relocated businesses, leaving unemployed workers behind. . This action has resulted in thousands of small businesses leaving California for more business-friendly states. How about that intelligence? Inviting small businesses to establish themselves in the states, granting tax breaks and reducing regulations, allows those states to take advantage of a cutting edge, business-killing mentality that is destroying California. Businesses continue to disappear en masse, unemployment continues to rise (12.2%), and the scale of producers vs. non-producers continues to tilt in the direction of non-producers. This is not rocket science. If I understand it, believe me, anyone can!
To put salt on the wound, the unions have prepared some very nice packages for state employees. Unions and management have promised very attractive retirement packages to state employees, and retired state employees receive state money at taxpayer expense. And the cash-starved state continues to throttle businesses and taxpayers for more revenue, and the people have had enough.
Well, this same California mentality has taken hold in Washington DC. The White House has done nothing to support small businesses. We have seen nothing but a tax increase with no exceptions. It is a fact that 75% of employees are hired by small businesses. The nation’s unemployment figures are over 10%! The highest since the early 1980s. Who is going to take up the mantle and unleash individuals and small businesses to make money while generating higher tax revenue? The president spoke very well on the campaign trail, but he has done nothing to encourage small businesses. He is a trade unionist who speaks of redistributive change, who is totally opposed to any policy favorable to small businesses.
There is no excuse for high unemployment numbers, unless it is done on purpose. When small businesses are allowed to reach their potential, more employees are required. With more employees, there are more producers who pay taxes. Not only do they pay income taxes, but people have more capital to buy goods and services. This generates a positive swing, which means more tax revenue and a positive reduction in the number of non-producers.
It is sad to realize that a percentage of US citizens want to see capitalism fail. Many have been convinced, “it didn’t work for me, so it’s a failed system that must be destroyed!” The communists would like nothing more than to see the destruction of our capitalist system. America, and the institutions that have made it the envy of the world, its enemies, many of whom live on American soil, have benefited from the freedom of all its people. The goal of socialism is to distribute wealth among the masses. But the problem with socialism is that when the wealth of a few is spread among the masses, all you get is masses of poor people, with the government in control of individual assets. Big government proposals are enemies of the Constitution of the United States. As most people know, the purpose of the Constitution is to limit the role of the Government and to allow people to be free and have the opportunity to achieve success and happiness.
The sad thing is that many Americans are willing to give up their freedom and the liberties of their children, to see everyone miserable. Rather than buckle up, educate themselves, and compete for high-paying careers, they’re willing to trade their freedom for the promise of a mother’s cut.