In Case You've Wondered

My blog is where my wandering thoughts are interspersed with stuff I made up. So, if while reading you find yourself confused about the context, don't feel alone. I get confused, too.

If you're here for the stories, I started another blog: scratchingforchange.blogspot.com

One other thing: sometimes I write words you refuse to use in front of children, or polite company, unless you have a flat tire, or hit your thumb with a hammer.

I don't use them to offend; I use them to embellish.

jescordwaineratgmail.com

Monday, September 19, 2011

The Business of Business

I've been on the business end of my business for decades. There is an important thing that I don't think many people realize: If the costs go up, the costs are passed on to the consumer.

Higher fuel costs? Passsed on to the consumer. Higher taxes? Passed on to the consumer. Whatever the costs are, they're passed on to the consumer, until the consumer changes their buying habits - whatever that may be - including less purchases or no purchases at all.

Another thing: Those that run the business will do everything they can to stay in business. If the costs reach the point the consumer is unwilling to pay the additional costs, cuts in operating costs are the next step. This usually means less employees. If there isn't enough work for the current staff, the staff is whittled down to an acceptable size. The steps to cutting costs can reach the point labor is outsourced to another country.

If the economy gets so bad the owners of businesses can't continue to operate, they don't go down with the ship. Their personal assets are protected and they legally absolve all responsibilities to the business in the courts. They may not be in the same financial shape they once were, but they're usually far from destitute.

So, where am I going with this post? Don't believe the hype about making the rich pay their fair share. Most of the "rich" are far from rich on anything but their tax return, and $2000,000 per year is far from rich. Ask a doctor or other professional that runs an office/business. Their monthly costs can be more than many people make in a year, but you have consider their costs include what many people make in a year. In fact, the people on their staff are what makes it happen. Punish the professional enough, they put somebody on the road, if they just don't give it all up and say: "That's enough!"

If you want to see real change, demand the bureaucrazies quit spending what they don't have. While you're at it, demand they start cutting costs the way businesses cut costs. After all, bureaucrazies don't produce anything except flatulence and paper. We have too much of both and need some relief.

2 comments:

  1. Well said, Jess. I wish I could make a few of my liberal/progressive friends realize this; they just point to CEOs making big bucks and whine because they don't.

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  2. I don't begrudge CEO's making the big bucks. If that's their deal, then they should get the money. It's not mine, or the government's.

    If I was so lucky to be involved with 6 figure bonuses, I'd be pissed if someone tried to take mine. They can get their own. All they have to do is work for it.

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