Why is small business failing?

[mac]

I have avoided commenting on this thread, particularly as it has gotten pretty silly. As usual, not much reading of each other's perspective. Widely ignored by the right is the simple fact that 70% of the US economy is based on consumer purchases. No matter how much capital is accumulated--and capital accumulation is necessary for both small and large businesses--and no matter how brilliant innovators and entrepreneurs are, enough people have to be able to buy the products. Neither can exist without the other.

It is inescapable that the Middle Class has shrunk in this country, but to blame it on Obama is to put your head in the sand, or some other dark place. Here is a key quote from the cited article:

[beaglebuddy]

In the building trades specifically and other types of businesses I would definitely say there is a war on small businesses, the reason is the DNC wants large corporations that will invariably be unionized and once unionized they can be controlled as a group not to mention all the $ unions will give to the party.
Commercial construction has gone nearly all large union shops that employ hundreds of people.
Residential construction is now nearly all illegal alien, this is where the good blue collar jobs have gone, to illegal aliens. There are still some white trash contractors like myself but we are mostly one man shows or hire a few illegals which I refuse to do. When I started in the trades Mexicans only did sheetrock, painting and insulation but slowly they started to become carpenters then plumbers like myself and electricians, they haven't figured out how to do HVAC, yet LOL but it's coming. Young Americans by and large just don't seem interested in getting their hands dirty.
It's a bit of a different story here in Hawaii where illegals haven't reached the islands in large numbers yet which is why we always have the lowest national unemployment rate, Apparently without a drivers license they can't fly here but that is changing and recently I have started to see a few Mexicans working on roofs etc. The local people here don't know what is coming, In Hawaii you actually see white people washing dishes and doing yard work, maybe only a few years left of this.

[mac]

Weren't you complaining when people call attention to racial stereo-typing--like your last post? Oh, I get it. You don't want to be reminded.

[real-human]

once again Germany has very strong unions and is putting out just fine products like cars. Porsche, Mecendes, audi, BMW, VW.

Got it, they have socialized medicine. They have an average of 6 weeks paid vacation. In the summer their work week ends at noon on fridays. Free education till you are over educated. Great trade school education. Teachers are highly paid and respected.

OK here is the edifference I have seen, the wealthy have cut and run. They do not invest in America. When in college I worked in a machine show as a machinist. This plant in the late 70s early 80s was using WWII machines for production. Some of our parts were going for tanks and so on. These machines just did not hold great tolerances. This company was being run by the founders kids. These trust fund kids were just milking it to give them high quality living and not investing in the business.

As an engineer I would qualify companies all over the Midwest, and it was the same thing all over, if the trust fund kids were running it their machines were were not state of the art. If I could find a company where the owner was the founder in general they would have state of the art machines that could hold great tolerances. In Germany the rich obviously have a pride in their county and re-invest and want to produce the best. I have also seen the same in Japan.

Now as as a small business operator, what i have seen again is a tightening up of money by the rich so the venture capital has tightened for seed stage, less seed money the harder to get moving.

And again we see the huge effect Bush had in his destroying the USA as he left losing 700k jobs or so a month with deregulating in essence the banking, and the most expensive unfunded war in the history of the world. That isn't something that is easy to recover from. Specially with the right wing on the day of Obama's inauguration holding a meeting to make sure things are bad for Obama in anything they could do.

As we know too the rich/companies were holding back with the most profits they have ever held in the history of the USA, yet not hiring or spending on R&D. Just hiding their moneies in tax havens waiting for the right wing to come in and give them another free lunch.

https://www.quandl.com/c/usa/usa-startups-venture-capital

http://www.businessinsider.com/historical-venture-capital-funding-2014-4

[techno900]

mac said:

[mac]

So you'd noticed that consumer spending was down, purchase power was down, that it was a major part of the economy, but didn't see fit to comment on that. Perhaps the overwhelming urge to blame Obama and/or liberals for everything is not working well for you?

Looking only at the last 6.5 years, and ignoring the impact of deregulation and the implosion of lending cratering the economy, is hardly a nuanced look at the economic issues. Only one aspect of that, and the response in the Dodds Frank Act has anything to do with small businesses. The lending rules made it harder for small businesses to get loans, and a large number of Democrats would join Republicans with any legislative abilities in changing those policies.

[techno900]

mac said:

[mac]

People that don't understand statistics, or people with deep prejudices, can cherry-pick a set of numbers to help support their biases. A sad statement on the quality of our education system that many people do it--and most people don't notice.

[MalibuGuru]

Mac, I have an MBA, but even the high school drop outs know this economy is all smoke and mirrors.

Meanwhile, Clinton will raise $2.5 billion dollars in her quest to become emperor of the world. Just like Obama this money was raised from billionaires and multimillionaires . They will continue to support the oligarchy because they understand that the conservative wing of the Republican Party will protect the average American small business man, not the oligarchy.

[techno900]

mac said: