It’s been interesting watching Trump offer the carrot and stick to corporations regarding them moving production offshore. Trump has tweeted threats of taxes of up to 35% on products produced by US companies produced offshore and then sold on American soil. The carrot he is offering is greatly reduced taxes and regulations to sweeten the spot to keep American jobs in America. We’ll see how successful he is getting Congress to repeal business-killing regulations they have been paid billions by globalist lobbyists to write!
AWD saw an old friend this week who owns a company in the Services industry. He was frustrated beyond belief at how federal and state government had negatively affected his business. I’m sure this frustration is shared by tens of thousands of small businesses across America.
My friend runs a small company of 300 non-skilled labor employees paid $10-$12 an hour. Margins are tight for his company like they are for most Business Service companies and his company struggles to remain in the black.
I asked him what he considered to be the biggest threat to his company’s survival. Without hesitation he said “government.” He said government imposes so many ridiculous employee laws and regulations that it’s hard to keep up with them all. I asked for clarification.
He said ObamaCare nearly sunk his business in 2015 and was worse this year. None of his low-paid hourly employees want ObamaCare since they generally receive medical care at free clinics, emergency rooms that must accept everyone as a patient by law, the Veterans Administration if they are former military, or have health insurance through a spouse.
Yet ObamaCare added thousands of dollars of cost each month, not to mention the administrative burden it causes for his small office staff. He said “why would my employees pay hundreds of dollars each month for health insurance when they receive health care for free?” Well, they don’t pay it. But ObamaCare has saddled his company with unnecessary administrative and premium costs while offering ZERO benefit to his employees.
He said the pre-ObamaCare plan his company offered had a premium of $70, offered numerous physician office visits and check ups, 80% hospital coverage, and covered catastrophic medical events. Now his ObamaCare compliant plan costs over $750 per month to the employee with a $6000 deductible. What employee making $11 can afford that? None. Just like the middle class workers who can’t afford a $1800 per month ObamaCare premium! ObamaCare is a true disaster zone healthcare debacle created by corrupt lobbyists and politicians enforced under the gun of the IRS! Land of the free, my ass!
He said that not only federal government gets in on destroying small businesses. Texas law and regulations have tightened and made it much more difficult in hiring employees. New laws and regulations in his industry have slowed his ability to hire new employees and get them working. Why? Because the State of Texas makes millions on new restrictions placed upon employers that lengthen the hiring process and cost much more in fees, licenses, etc.
He was very frustrated with the EEOC and Texas Work Force Commission. It seems that many of his unskilled line employees join the company looking for lawsuits. And the EEOC and Texas Workforce Commission are only too willing to help his employees with these scams. The EEOC and Texas Workforce Commission always side with his employees looking for lawsuits. Many are scams with crooked “Civil Rights” lawyers and set ups from employees who know labor laws better than those who wrote them.
He told me of a recent case where a line employee joined his company. His company doesn’t allow facial hair at certain clients per the customer’s request. The employee applied and was hired without facial hair. He signed a document understanding the company had a “no facial hair” requirement at certain client sites. Once assigned and put to work, he told a supervisor his ‘religion’ required him to have a beard. His supervisor said that he couldn’t have facial hair and work at that site. My friend asked that the employee come see him to discuss other options and moving him to a new client location. Did the employee see my friend? No, he got a Civil Rights attorney who filed charges with the TWC. The TWC is filled to the brim with minorities who ALWAYS side with the employee. After a brief investigation, the TWC mediator recommended the company pay the former employee in excess of $30,000 or the TWC would come in and fully audit the company where even larger fines could be imposed. Extortion, nothing more. My friend rejected the “arbitration” demand. The case was further investigated and found his religious and civil rights had not been abused. The case was closed only after my friend spent thousands in legal fees rather than suffer extortion from the EEOC..
Well, that case was closed. The former employee has now found another ambulance chasing lawyer who has demanded $250,000 for religious and racial discrimination.
My buddy said he wonders if the mediators are being paid off by the lawyers in these cases to find in favor of their clients. He told me this case was a set up shake down. Instead of contacting management for reassignment to a client site where facial hair is allowed, this employee of a few weeks lawyered up. My buddy told me he currently has 3 other lawsuits on his company where they fired employees for documented gross dereliction of duty. TWC mediators are suggesting large settlements for each of these.
To say my friend is frustrated is an understatement. His words to me were, “the government is working as hard as it can to put us out of business!” This is the shit American businesses must suffer. And it can all be laid at the feet of government. And it adds to the cost of their products and services.
Take all of his frustrations and add to them the costs of FICA, FUI, SUI, FMLA, Cobra, HIPAA, etc and tremendous sales taxes, licenses, state and local fees, etc and it’s easy to see why so many American small businesses are going broke!
My friend’s company is a good company that takes care of its employees. He told me that he personally put up his own money to keep a good employee out of jail for failing to pay child support.
Liberals love to disparage the “greedy” businessman and castigate those who take their business overseas. But liberals have themselves to blame. Texas doesn’t have the organized labor problems most blue states suffer. Unions have run as many American jobs overseas as the government. But federal and state government make it extremely difficult for American small businesses to stay afloat.
Why would any American business producing widgets stay in America with all the outrageous burdens placed upon it by government when it can take its production overseas for a fraction of the cost. Do liberals think China or Mexico has FICA, FUI, SUI, FMLA, Cobra, HIPAA, etc? Hardly!
If you haven’t figured it out, government is the enemy of the responsible. It penalizes those who work hard and provide jobs for tens of millions of Americans. Government bureaucrats who have never produced one penny of wealth or had to sign the front of a paycheck plague American businesses with a myriad of laws, regulations, and ridiculous fines.
After hearing the frustrations of my friend, I asked him if he thought it would ever get better for the American businessman. He said, “only if the government collapses.” An interesting thought. And a sad one.
The saying “no good deed goes unpunished” comes to mind. That fits perfectly with the plight of the small American businessman. Here is a guy running a company that wants to do right for his employees and make a return on the investment he has risked. He told me he has contemplated closing the doors, taking his money and running. But 300 people would lose their jobs and their lives would be greatly effected. The media and government would blame him for being greedy. But the true story would be that another Atlas Shrugged.