by John Cylc
May 11, 2021
By now, all Americans should be aware of the plethora of job openings and the unwillingness of the unemployed to take those jobs. It seems as if something is askew with the laws of “Supply and Demand”. This is a troubling situation for America. Businesses, many Republicans and conservatives blame the additional unemployment benefits provided by Covid-relief packages. According to most Democrats and liberals, it is due to the employers who have the job openings not offering enough money.
I think the latter is using this opportunity to push its well-known agenda of “wealth distribution” by gaining a chance to raise the minimum wage to $15 per hour. If they cannot force Republicans to support such a law, this current crisis will force the businesses to either adopt their policy or shut their door. In many instances both choices may be the result, with the first leading to the second.
For those career government employees and lifelong politicians, there seems to be a lack of understanding of small business. When an individual starts a small business, not only does every dollar matter, but every nickel does also. The margins of small business are often razor thin. That means the difference between being successful or closing the doors could depend on minor price changes or operating expenses.
Why should the average American worry about this issue? Small businesses account for 2/3rd of new jobs and 44% of U.S. economic activity. However, they fail at a rate of 20% in the first year, and that goes up to 1/3rd by year two, and 50% by year five. Our economy survives off small businesses.
The greater number of employees working in any given restaurant get a minimal wage ($2.13 per hour), counting on tips to make the bulk of their salary. This makes hiring back servers on unemployment difficult. Why would someone choose to work hard, risking some people tipping them poorly, knowing that staying home doing nothing on extended unemployment benefits would be more profitable?
I watched in amazement last week as a Fox News reporter stated that if businesses really wanted to hire more workers, they should “just offer more money”. He was standing outside of some restaurants in Philadelphia. This statement shows where a big disconnect lies with many who have never worked in the service industry. Paying servers $15 an hour or more, while struggling to recoup losses from the forced pandemic shutdowns, is a recipe to increase restaurant failure numbers drastically.
Right now, regardless of what our “Figurehead-in-Chief” says, the main competition for employees is the economic stimulus package. Small businesses cannot compete with the government. Hell, even Big Business cannot compete with Big Government, which has nearly unlimited funds, money printing capability and current leadership that has a general dislike of capitalism.
If the left istrying to destroy our economy and rebuild the country in its socialist ideal, they are practicing “synergy” very well, claiming to fix the Covid pandemic issues by making the worst possible decisions for America’s well-being in financial, cultural and strategic matters.
If destroying our country is NOT the goal of the left, they are totally incompetent at running the government.
Anti-American or incompetent? It does not matter. The result is the same unless we stop the leftist agenda-the end of America as a free Republic.