Author Topic: Letter from the boss  (Read 5421 times)

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To All My Valued Employees, There have been some rumblings around the office about the future of this company, and more specifically, your job. As you know, the economy has changed for the worse and presents many challenges. However, the good news is this: The economy doesn't pose a threat to your job. What does threaten your job however,is the changing political landscape in this country.*

However, let me tell you some little tidbits of fact which might help you decide what is in your best interests.

First, while it is easy to spew rhetoric that casts employers against employees, you have to understand that for every business owner there is a back story. This back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Mercedes outside. You've seen my big home at last years Christmas party. I'm sure; all these flashy icons of luxury conjure up some idealized thoughts about my life.

However, what you don't see is the back story.

I started this company 28 years ago. At that time, I lived in a 300 square foot studio apartment for 3 years. My entire living apartment was converted into an office so I could put forth 100% effort into building a company, which by the way, would eventually employ you.

My diet consisted of Ramen Pride noodles because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a defective transmission. I didn't have time to date. Often times, I stayed home on weekends, while my friends went out drinking and partying. In fact, I was married to my business -- hard work, discipline, and sacrifice.

Meanwhile, my friends got jobs. They worked 40 hours a week and made a modest $50K a year and spent every dime they earned. They drove flashy cars and lived in expensive homes and wore fancy designer clothes. Instead of hitting the Nordstrom's for the latest hot fashion item, I was trolling through the discount store extracting any clothing item that didn't look like it was birthed in the 70's. My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my life into a business with a vision that eventually, some day, I too, will be able to afford these luxuries my friends supposedly had.

So, while you physically arrive at the office at 9am, mentally check in at about noon, and then leave at 5pm, I don't. There is no "off" button for me. When you leave the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom. I eat, and breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour. Every day this business is attached to my hip like a 1 year old special-needs child. You, of course, only see the fruits of that garden -- the nice house, the Mercedes, the vacations... you never realize the back story and the sacrifices I've made.

Now, the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bail-out all the people who didn't. The people that overspent their paychecks suddenly feel entitled to the same luxuries that I earned and sacrificed a decade of my life for.

Yes, business ownership has is benefits but the price I've paid is steep and not without wounds.

Unfortunately, the cost of running this business, and employing you, is starting to eclipse the threshold of marginal benefit and let me tell you why:

I am being taxed to death and the government thinks I don't pay enough. I have state taxes. Federal taxes. Property taxes. Sales and use taxes. Payroll taxes. Workers compensation taxes. Unemployment taxes. Taxes on taxes. I have to hire a tax man to manage all these taxes and then guess what? I have to pay taxes for employing him. Government mandates and regulations and all the accounting that goes with it, now occupy most of my time. On Oct 15th, I wrote a check to the US Treasury for $288,000 for quarterly taxes. You know what my "stimulus" check was? Zero. Nada. Zilch.

The question I have is this: Who is stimulating the economy? Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business? Or, the single mother sitting at home pregnant with her fourth child waiting for her next welfare check? Obviously, government feels the latter is the economic stimulus of this country.

The fact is, if I deducted (Read: Stole) 50% of your paycheck you'd quit and you wouldn't work here. I mean, why should you? That's nuts. Who wants to get rewarded only 50% of their hard work? Well, I agree which is why your job is in jeopardy.

Here is what many of you don't understand ... to stimulate the economy you need to stimulate what runs the economy. Had suddenly government mandated to me that I didn't need to pay taxes, guess what? Instead of depositing that $288,000 into the Washington black-hole, I would have spent it, hired more employees, and generated substantial economic growth. My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries. But you can forget it now.

When you have a comatose man on the verge of death, you don't defibrillate and shock his thumb thinking that will bring him back to life, do you? Or, do you defibrillate his heart? Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it. Suddenly, the power brokers in Washington believe the poor of America are the essential drivers of the American economic engine. Nothing could be further from the truth and this is the type of change you can keep.

So where am I going with all this?

It's quite simple.

If any new taxes are levied on me, or my company, my reaction will be swift and simple. I fire you. I fire your co-workers. You can then plead with the government to pay for your mortgage, your SUV, and your child's future. Frankly, it isn't my problem any more. Then, I will close this company down, move to another country, and retire. You see, I'm done. I'm done with a country that penalizes the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.

So, if you lose your job, it won't be at the hands of the economy; it will be at the hands of a political hurricane that swept through this country, steamrolled the constitution, and will have changed its landscape forever.If that happens, you can find me sitting on a beach,retired, and with no employees to worry about....

Signed, Your boss


Discuss..
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Offline Solatar

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Like any generalization it isn't  universally true.  However I do agree with the central message of it.  "Stimulus" in the form of small amounts of free money will certainly help people in the short term (read:  a few months) but it doesn't actually do anything for the economy.  As far as I know (listened to an article), most of the stimulus money given to individuals was spent paying down debt or saved.  While those are helpful in the short run for individuals, the economy as a whole doesn't benefit because three months later the same people are in the same position.

 

Offline Angelus

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He is right. He is also wrong.




 

Offline General Battuta

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He is right. He is also wrong.

Concur. Makes very valid points (highlighting a lot of the best parts of fiscal conservativism.) But he also employs fallacy-of-vividity (POV storytelling is no substitute for statistics and economics research), and he activates a few myths about where taxes go (the welfare mom, for instance) that are pretty bizarre.

For instance, I didn't hear any criticism of massive waste in government spending, nor of the military budget, both of which he probably should've targeted.

He was right about the political storm that swept away the Constitution, though -- I imagine we'll all be glad to see the end of the Bush era.

Also, er, I'm betting this wasn't written by any business owner. It's probably an instructional fable being passed off as fact.

 

Offline Bob-san

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His economics are correct. The point is that more tax only suffocates medium-sized business. A lot of high-revenue, low-profit businesses will be tacked on a large amount of tax--which could amount to an additional worker (or more). Once you pass the "small-business" phase, you're stuck in a world with big government wanting every penny you made. It comes to the point that countries (ehem: China) without these barriers will be the big business of today and tomorrow.

If I was Obama's economic adviser (I'd be totally unqualified, but this is a what-if), I'd tell him to slash business taxes and levy a luxury-good tax. That should employ many more people, reduce total fixed and marginal costs, and overall put a lot more people into positions where they can now choose if they want to "play". It should also keep high-ticket items away from the mortgaged middle class--a 20% increase in overall cost of ownership would do quite a bit towards saying "enough is enough", and living with what you've got. Beyond that, I think that the government would be better to pay individual debts in a stimulus package then to pay everyone. Freezing both AIR and VIR mortgages temporarily (say for 3 months) and paying off 2-3 months worth (but require the normal monthly payments) would go a long way.

Anyways--if it wasn't for luxury goods and easily-available credit, many people would be in better positions today.

By the way--capitalism works best when there's nobody to export wealth to.
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Quote
If I was Obama's economic adviser (I'd be totally unqualified, but this is a what-if), I'd tell him to slash business taxes

He'd tell you to leave his office, that idea is against his own of "redistributing wealth".
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Offline Galemp

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Try reading the rest of his sentence. And from that kind of knee-jerk reaction I have a feeling you're less than neutral about this 'letter' (which smacks of chain-letter email slop.)
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Offline Bob-san

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Frankly that would be a better way to equalize wealth. If you want to take care of business going south, you start at the ground floor. That means have more people gainfully employed and thus consumers. They'll be contributing to the economy, they'll be making what they want, and there'll be more grass-roots support for peace. In addition, more people living and working in the USA would contribute greatly towards our public schools and universities, and the overall shift towards becoming more wealthy will be supported by learning. That's called advancement. Economic, social, technological, all mixed into one solution so simple that Washington hasn't committed to it in two centuries. That's why each and every government and economic structure is written about as if there were no problems. That's where we want to go, so we need to position ourselves to go there. Funny enough, that's pure competition capitalism--demand will stay constant, and each and every individual company in each and every industry will produce to their maximize revenue. Overall it's a cheery picture: a lot of lower-high class and upper-middle class managing the middle-class and hopefully eliminating lower-class. Unfortunately this is less than ideal in practice: as was seen by the Robber Barons over a century ago, size means profit and profit means power.

A capitalist economy has advantages with morale and motivation for entrepreneurs. A command economy has advantages with social and economic equality. When considering it in government terms, a capitalist economy can be best described as policed anarchy: there should be no controls and no barriers to entry, which will mean that industries are dominated by hundreds or thousands of medium-sized companies. And a command economy? Democratic communism. You get told what to build, and your hopeful motivation is a large range of candidates at all levels with good ideas.

The following line summarizes my reasons for disliking welfare in its current state.
If nobody works, who pays the bills?
« Last Edit: January 15, 2009, 05:14:27 pm by Bob-san »
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Offline General Battuta

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Since people rarely (statistically) stay on welfare very long, it's hardly a crutch.

Anyway, Obama's contemplating a tax cut, so everyone should be pleased.

 

Offline Bob-san

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Since people rarely (statistically) stay on welfare very long, it's hardly a crutch.

Anyway, Obama's contemplating a tax cut, so everyone should be pleased.
What I'm saying is the government needs to figure out one position on this, and stick to it. We've had transition-period legislation for decades, and nothing has become of it. So either finish the job or revoke it all. I think we'd be more productive and better able to compete with the rising East if we revoked it. Taxes are a necessary evil, at least in this stage of the Human game. Other than that, I'd like to see the Feds supporting our own nations in expanding into the East. Better competition will end up meaning that the 1st World is not only justified, but also protected from the less-expensive labor (by nature) of the 2nd World, while we all strive to help the 3rd World advance, solving collective human issues.
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Offline Solatar

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Anyway, Obama's contemplating a tax cut, so everyone should be pleased.


"Contemplating" a tax cut is a considerable downgrade from his campaign promises, if I recall.

Not that I expected him to be able to try and spend his way out of a recession and cut taxes at the same time.

 

Offline General Battuta

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Anyway, Obama's contemplating a tax cut, so everyone should be pleased.


"Contemplating" a tax cut is a considerable downgrade from his campaign promises, if I recall.

Not that I expected him to be able to try and spend his way out of a recession and cut taxes at the same time.

Well, in his campaign he was saying he'd roll back tax cuts (i.e. raise taxes.) So depending on your opinion of taxes, it's a downgrade or an upgrade.

 

Offline Ghostavo

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Better competition will end up meaning that the 1st World is not only justified, but also protected from the less-expensive labor (by nature) of the 2nd World, while we all strive to help the 3rd World advance, solving collective human issues.

2nd world? What 2nd world nations are there left?
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Offline Bob-san

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Better competition will end up meaning that the 1st World is not only justified, but also protected from the less-expensive labor (by nature) of the 2nd World, while we all strive to help the 3rd World advance, solving collective human issues.

2nd world? What 2nd world nations are there left?
Realistically, I'd consider India and China the main contenders for a new "2nd world" title. They're not as big as we are, but they're closing. Our wealth has been and is being exported, which causes problems for our long-term viability. So either until we're all equal or we're all dead, I don't think that trade between East and West is particularly healthy.
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Offline Ford Prefect

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We're seeing the first signs that Reaganomics might be relegated to the septic tank of history where it belongs; perhaps this is the shrill, obnoxious sound of its death throes.
"Mais est-ce qu'il ne vient jamais à l'idée de ces gens-là que je peux être 'artificiel' par nature?"  --Maurice Ravel

 

Offline Bob-san

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By the way--when I talk about economics, I think it's best not to make a distinction between ethical and unethical.

Anyways--my thought, as I've put down a few times now, is that we need to choose our path. Standing on economic middle ground only hurts the USA and most of the West as well.
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Offline Roanoke

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I find it odd that you chaps, who I presume are American, talk about economic middle ground when the country is facing a $3 tillion defecit. I don't even know how many zeros is in a trillion. "o,o,ooo,ooo" maybe ?

And I'm not being smug as Mr Brown seems keen to see the UK go the same way.

 

Offline Bobboau

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Offline BloodEagle

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Somewhat related: this and this

 :eek2: :nervous: :shaking:

 

Offline Bob-san

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I find it odd that you chaps, who I presume are American, talk about economic middle ground when the country is facing a $3 tillion defecit. I don't even know how many zeros is in a trillion. "o,o,ooo,ooo" maybe ?

And I'm not being smug as Mr Brown seems keen to see the UK go the same way.
The difference is there's two ways to get us out of a such a deficit. One is to tax the hell out of our businesses, the other is tax the hell out of our citizens. I'd prefer the latter route, but only if it's done with full equality. Combine that with smaller government (including less war) and less pork-barreling (much of which got us into this mess in the first place), and the USA can be economically viable again. I'll be writing letters to Obama about this--he needs to decide if he wants US and Western industry to fall behind that of the rest of the world. Same thing goes with Gordon Brown--he needs to decide where the UK is going.
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