Yes an employee making $8 an hour can cost $18 an hour to employ but the company is making in profit $45 an hour off his labors.
The company should not benefit more from a mans labors than the man laboring, it should be more in the mans favor or at a minimum equal, after all the
man is doing all the work, the company is simply getting profit.
Spoken by someone who has NEVER owned a business I bet. The average American doesn't even begin to fathom actually how hard it is to succeed in
Business. When you figure all the other expenses and costs they have to take into consideration, you would find your profit margin shrinking rapidly.
Taxes, rent, utilities, licensing, supplies, marketing, insurance and a host of other costs will eat you alive.
In your example, let's assume it's a restaurant. Not every employee is actually generating those sales, so it's more like 2 employees per $50 of
sales per hour. Labor is around 30% roughly, food costs run 24% to 28%, taxes paid by the business run at least in the 8 to 10% on the low end and up
to 14% when they are all factored in. So far we have eaten up 62% of the profit at a minimum, now add 4% for utilities, 3% to 5% for marketing,
payroll and accounting will add about a 1% to 2%. Various other normal operating costs, ie repairs,replacements will tack on another 3% to 5%. Now we
are at 24% profit. Rent will be 7 to 10% and financing will add another 6%. Now we are at 11%. Let assume the restaurant is open from 7am to 9pm.
14*50*11% profit margin. The owner,who probably is at the restaurant all that time, made a whopping $77 dollars profit for 14 hours work or $5.50 an
hour after paying ALL the bills, which I might add, he still has to pay taxes on. And people wonder why most restaurants fail.......... You have to
have the volume flowing or it's a quick death.
Being the small business owner isn't glamourous when you are struggling to just keep the doors open and the lights on. I've been there, it's a lot
more enjoyable looking back on those days now then it was when we struggled to make payroll. It wouldn't have taken much for our fledgling business
to falter in those days. More burdens placed on them will only have the effect of hurting those businesses. But our Government and our Leaders (who
for the most part have never owned their own business, let alone actually WORKED a real job) know what's best for us.
I apologize, I missed your reply in my busy browsing schedule. Let me give your reply the attention it deserves, as you made several very good points
in your rebuttal.
We are in fact living living in the "fiat economy" where a government simply prints as much as it needs at will.
There is absolutely no need to tax the people or business in this system of economics except to impose financial hardship to influence the market.
If it mattered at all how much they print, they would not have printed trillions for Obama, and then QE3. It doesnt matter at all, and this money all
went to those in the top 1%. Not one single dime helped a single small business owner or one single regular joe.
If they had printed the same amount and given it to the regular folks and the small business owners the entire problem would have already fixed
itself, as everyone would have bought a house, mortgage problem solved. Everyone would have bought a car, car industry fixed. All sectors of goods and
services would have boomed over night, small business issues fixed.
They didnt because they dont serve us the little guys, they serve the top 1% who get them elected.
If this money mattered at all they wouldnt have flushed it down the toilet like they did. The TARP bailout........did nothing but waste a trillion to
stop those that raped the economy from losing any money at all, in fact they all got very large bonuses.
QE3 inflated the stock market, that they raped everyones 401Ks with, so that those that did the raping didnt lose any money on the collapse, and got
to keep all the gains the got in the raping of said 401Ks.
This entire system is rigged to guarantee only them and their buddies can get ahead.
Your not understanding my point I think.
The small business fails so often because they make it impossible not to unless they want you to win.
Just for the record I did own a small business, subcontracting in construction actually. The ability of the U.S. to be the only nation on the planet
that cant stop illegals from crossing our border killed that when they did the same work as all of us contractors for less than half the price.
Now pretty much only those employing illegals, or those that are connected to the unions are still in business. It is actually quite pathetic really.