Authored by Charles Hugh Smith via OfTwoMinds blog,
People love their big paychecks, but they also value their sanity.
One of the most astonishing manifestations of disconnected-from-reality hubris is public authorities’ sublime confidence that employers and entrepreneurs will continue starting and operating enterprises no matter how difficult and costly it becomes to keep the doors open, much less net a profit.
The average employee / state dependent reckons that the small business owner / entrepreneur is killing it financially, banking a small fortune in pure profit every month, and that they’re doing what they love so they’ll continue doing it no matter what. In other words, they’re all wealthy Tax Donkeys who can easily afford higher taxes and fees and will tolerate paying more to keep doing what they love.
Wrong on both counts–dead wrong. A far more typical response is the one a house painter emailed me last year: every day, he reported, he wanted to dump his spray rig and power washer in a dumpster and leave the U.S.
The number of small businesses and entrepreneurs hanging on by a thread financially and emotionally is legion. Rather than killing it, they’re getting killed by rising rents, wages, labor overhead, taxes, fees, licensing, inspection fees, insurance and so on.
The long hours, financial risks and open-ended responsibilities are ideal conditions for burn-out and bankruptcy.
My partner and I had a ready response when employees hinted that we must be raking in big bucks: here’s the keys to the front door, payday is on Friday.That shut them up in short order because they could see we meant it: it’s all yours, including meeting payroll in a bad month out of your own pocket.
The craze for early retirement among highly paid workers is a manifestation of burnout: young workers see the destructive toll of stress and overwork on their older peers and vow to scrimp and save to avoid that fate. Young workers who burn out end up back at home or in low-key, low-pay jobs that don’t demand their life and their soul in trade for a big salary.
Older workers in senior positions are retiring the second they qualify–or earlier. Their professions are simply no longer fun or rewarding.
The general public and government officials are clueless about the ever-increasing burdens being heaped on small-business employers and entrepreneurs. It’s not just financial burdens–it’s the stress of being fined for minor violations of complex regulations few small business owners can track, and the constantly increasing regulatory compliance paperwork.
Again, the general assumption is the employer and entrepreneur have no choice but to continue soldiering on, even as the burdens of operating a business are crushing. This assumption aligns with the convenient belief that small business Tax Donkeys can pay more and should pay more, and they should be delighted to earn the privilege of operating in our progressive city/county/state.
The number of small businesses that will shut down in the coming recession will astound governments counting on higher revenues from the Tax Donkeys.The number of highly productive and highly paid workers who quit or retire early will be equally astounding to Corporate America, which blissfully assumes the Productive Class will take every increase in workload and responsibility that’s shoved on them because they love the big paychecks so much.
People love their big paychecks, but they also value their sanity; and after years or decades of corporate servitude, an unexpectedly large number will regain their long-lost agency, which they will express by quitting and bailing on their high-cost lifestyle.
When the Productive Class has been pushed hard enough, they will opt out, and the corporations and governments that have counted on their servitude will find that all of their systems no longer function well, if at all, once their most productive peons toss their servitude in the nearest dumpster and opt for a much lower cost and lower-key life.
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And the fact that so many are so dependent on long supply chains, “just in time” inventory management, specialized sources, and more, will devastate some of the larger corporations. The true greatness of Mises was his emphasis on HUMAN ACTION as being the key to understanding economics. Meanwhile, the criminals that invest our governments, continue to put all of their faith in the “scientific approach” of Keynes and other economists who thought that getting the formulas to all work out was all that was needed to keep the economy and the government running. Idiots.
The gasoline situation in California is a good example. They have the highest gas tax, charge sales tax on the gas tax, and demand the refiners supply them with “special blend tree hugger gas” which at the end of the day does nothing but cost more. Pretty boy Newsom is demanding the oil industry explain to them why all of this makes gas cost more than other places. I don’t know if he is this stupid or just a shithead liar. I don’t discount him being a “stupid shithead liar” either FWIW.
I would guess that Pretty boy Newsom likely has never held a real job, has he?
Unless polishing your teeth is a job, I doubt it.
I’ll vote for #3. “stupid shithead liar”
Corrupt shithead liar would be choice #4 and my best guess.
Of course,when the productive “opt out”,they have a lot more time on their hands to think about why they opted out and who was responsible,among other things.
Going Galt is the alternative term for productive ‘opt-out’
Productive being the key word. Galt didn’t just quit, he went elsewhere and became part of a community with like ideas. He had the advantage of the “force field” hiding Galt’s Gulch from the outside world. “Who’s John Galt?”
Which is fine unless they spend their day watching the mainstream media, where everything BUT the real cause is blamed.
Here is an example I have given before about how clueless many employees are. An employee came to me in a financial crisis, needing $100 to get him through. I reached in my wallet and held out $100 to him.
“No, no!” he said, “Not from you, from the company!”
That is how clueless they often are – they do not understand that the company’s money is my money. And hence why I get excitable when they waste money and time.
It will end poorly.
Big Injun Chief is right again . Most are clueless about business. I am a truck driver owner operator. I now completely own my truck and trailer . Even though I own it I still get hit with every kind of tax ,toll ,fine, fee and sales tax you can imagine.Then all the licensing fees ,hazmat ,tanker , doubles and what not. .This shit goes on and on. It is so frustrating . I am incorporate and my tax rate is supposed to 22 % but including all the other shit it’s hard to save money. With the maintenance on my equipment and fuel which is supposed to be tax deductible but I still have a hard time saving money. I guess I shouldn’t complain but it is frustrating. Everytime I turn around I am paying money out . I would probably do better as a company driver. I have no pension or insurance but my shit is my shit.I think. At least that’s what I’m told. I will keep doing it as long as my health holds out but I want to quit this shit about once a day. Years ago trucking was a respectable line of work with plenty of opportunities to make a good living but not anymore. The government has debased the money to point of it being worthless. Then you have tons of Third world bottom feeders because immigration who will work for nothing it kills wages for white men like and the blacks that are out here . I hate the fucking Jews and these white traitors more then you can imagine. They have destroy my country.
BB
I’m right with you regarding all the fees, regs, fines, etc. I no longer do much that can be taxed. I’m part of the gig economy and I downsized my lifestyle to get and stay there. You can’t really save money because what money you get goes out again, a revolving door. Went to the mailbox just now, crammed full of bills, bill for necessities like water and electicity. Looking at those bills it isn’t just product or service being charged, there’s state and federal taxes, fees, recovery fees and a host of other costs. I look at the water bill, actual water usage is eleven dollars and the bill is $76.
If i didn’t want to be a denizen of Walmart parking lots, I’d join the RV crowd. Then again, that has it’s own issues and costs.
we need 000 s of slab cities in this country,then you’d have huge #s of rv’ers–
BB
And to show a point with your business, many people do not know many businesses have special taxes that drive up the billing prices, such as your tractor and trailer which has many large tires, each which carry a special disposal fee/tax.
torches and pitchforks…..someday…..torches and pitchforks….like visions of sugar plums dancing in my head. Burning hate to keep me warm at night. The red pill is so much fucking fun I wish I could take two.
BB,
Great rant, and I sympathize with your frustration. ” I would probably do better as a company driver.” Do you have onboard GPS so someone in gubmint can keep an eye on you, “for your own good”?
God Bless
Back in the day, most Americans owned their own businesses. It may have been a small farm or similar, but they were the owners, and THAT was the American dream. Even Lincoln acknowledged this during a speech in Nebraska during his campaign. Nowadays they promote home ownership, car ownership, having all the tech in the world (all debt-based things) as the “American Dream.” Meanwhile virtually nobody owns their own business and has truly NO appreciation for what it means, where the money comes from, how costs are passed along to consumers, etc.
Mr Liberty – no, that has never been the case that most people owned their own businesses.. People sometimes believe it was so, but in fact it has never been so. That American dream never existed.
California: ‘Climate change’ tax on restaurant patrons, LOL.
https://www.zerohedge.com/news/2019-04-26/california-asks-restaurants-charge-customers-1-climate-change-fee
I wonder what is next?
True on at least 2 counts for me.
1. I am retiring the second I am able because I have been scrimping and saving to not be under the man’s thumb on minute longer than necessary.
2. My small business will never close because it never existed officially. When it costs north of $1000 just for the privilege of having a business to take all the risk only to surrender a portion to the state and feds they can pound sand. I will keep it on the downlow. Evey cost/benefit analysis I’ve done says it still makes more sense for me to stay bootleg or pack it in.
Slavery never ended. Slaves in the past had to be housed and fed. Today, the slaves are paid and therefore have to house and feed themselves. That’s really the only difference. If anyone doubts this just look at what your portion of the national debt that you owe, yet you did not cause.
Reminds me of hussein’s line of bull: “you didn’t built it”.
I believe the shithead Bath House Hussein lifted that line of BS from Fauxcahontas.
The so called “Civil War” made slaves of all men. You are either a tax slave or a welfare slave.
xcellent point
The indirect/secondary effects:
No small business (other than some local services and watch the billionaire-club start buying those up soon; prepare for “Nationwide Landscaping”, “Nationwide Painters”, “Nationwide Roofers”, “Nationwide Groomers” and many more of that nature) can even get a foot in the door at potential customers.
Finding/talking to a buyer/decision-maker, jumping through endless “supplier information” hoops, setting up a meeting, giving time for them to review, etc. – takes about 1 year (or more), at this point on a large perecentage of sales/products.
Huge fixed costs for all sales now with diminishing potential success rates compared to just 10 years back. Fishing ain’t free, but you can’t fish for long and catch only a few bluegills on a 50′ boat.
Now, you have to supply 100 products (far more is preferrable) or it’s “too much work” to pay for and keep track of inventory – so much easier to buy everything from just 1-3 vendors.
Prepare to match an Amazon price on an apples-to-oranges comparison. You have better quality? More features? Better warranty? Good reputation/stability/longevity? U.S. service-techs and phone-techs? WHO CARES – match the Amazon (or Ali-Babba) price but YOU must provide the best quality at the junk price. It’s not just competition – it’s unrealistic.
Race to the bottom on everything – destructively inclusive of ones value/knowledge/skill. I believe this is part of the process of becoming a Banana Republic – self-improvement, risk, hard work…they “don’t pay”. Why bother? Only the 1% can play this game now.
Indirect result of debauching the currency and pushing (hard) all 10 planks of the commie manifesto for the last 50+ years, along with a MIC that deviates savings and productivity increases into an insatiable gullet. Imagine spending 40% or so of your entire salary (every single year) on weaponry and mercenaries to attack and raid anyone living near you. Destructive and Absolute Insanity.
Yep. I was an Insurance Exec for 40 years. The most significant birthday I ever had was 59 1/2. I retired a few months later at 60 and have not looked back. I wouldn’t go back into that regulation hell for any amount of money or anything else. Just happy I am the age I am and plan to die before the final collapse of Western culture.
Enjoy your hive lefties.
“Just happy I am the age I am and plan to die before the final collapse of Western culture”,damn Bill,sorry to hear about your imminent demise!.
Survival is the answer we all desire. Socialist freaks are re distributors. Do not defend what you own and discover what the word respect is. Make mrrywanna legal to further dumb down a struggling society. Good news somewhere on the horizon, math says no
then there’s this,the equality act–who would want to run a business w/this hanging over their head?
it will make the amer.w/disabilities act look tame–
from the federalist–
https://thefederalist.com/2019/04/22/called-equality-act-bait-switch-power-grab/
Who is John Galt?
Agree wholeheartedly, Charles. I see it in IT on a regular basis among Gen X. No one wants to mentor the Millennials and when the last of the Boomers leave, I shudder at the giant sucking sound of IT knowledge meeting the event horizon.
Revenge is a dish best served cold. I have my skills and do not wish to offer them to corporations much longer. They need me, not the other way around.
Been there done that. My profession use to be a Computer Systems Engineer.
The Negroes ran me into retirement.
I still have people asking me if I am doing okay. I tell them I love being Mister Mom to two great grand sons! LOL!
I looked into my work future decades ago and noticed one common thread . The parasitic nature of government and all in its employ regardless of position elected or hired thru some bureaucratic agency . I have never encountered a government employee that was not completely convinced how much more salary and benefits they would have in the private sector yet none would quit and strike out on their fantasy because down deep they know they are full of shit !
In Baltimore county when Beth Steel finally folded and 30,000 steel workers took lower paying jobs the county governments action was to raise taxes on the population to maintain the cash level in government for salaries and benefits . Talk about let them eat cake mentality . I brought up the fact that government officials sporting that mentality would meet with an untimely accident with hot tar and feathers at one time in this nation but no more . Shame history really doesn’t repeat itself in many cases .
I have lived these two quotes from the article:
Older workers in senior positions are retiring the second they qualify–or earlier. Their professions are simply no longer fun or rewarding.
And:
The number of highly productive and highly paid workers who quit or retire early will be equally astounding to Corporate America, which blissfully assumes the Productive Class will take every increase in workload and responsibility that’s shoved on them because they love the big paychecks so much.
‘Nuff said!