I'm confused. When the average Joe can't save up a financial safety net and falls on hard times people always tell him/her tough shit. Go get a job. You should have been more financially responsible. When a business owner can't save money and falls on hard times and goes broke, the business owner whines and bitches and protests and immediately want a huge hand out. Then the same people that ridicule average Joe, go and defend the loser business owners and whine and cry in their defense. Why is that?
Why should anyone feel bad for small businesses not being responsible
- Thread starter PintoFire
- Start date
because GOP=hypocrisy
It's because of the multiplier effect. Generally speaking, a small business likely employs multiple people, may involve multiple suppliers, subcontractors, other counter parties etc and therefore there is more collateral damage to a greater # of people/businesses when a small business runs into this problem than an individual. The business may also rent a workspace/factory/store front which involves a counter party on the other side dependent on that income stream.
In essence, when comparing both an individual employee vs a business owner, both falling on hard times due to no fault of their own, the net negative effect to society and the economy is greater for the small business going under than the individual. Small business accounts for roughly 44% of all business activity and, frankly, we want to encourage entrepreneurs and risk takers to start businesses, employ people and create competition in their space.
In essence, when comparing both an individual employee vs a business owner, both falling on hard times due to no fault of their own, the net negative effect to society and the economy is greater for the small business going under than the individual. Small business accounts for roughly 44% of all business activity and, frankly, we want to encourage entrepreneurs and risk takers to start businesses, employ people and create competition in their space.
I understand what you're saying but I thought socialism was bad. When average Joe asks for a handout, that's socialism, and that's disgusting. On the other hand, when a loser business owner runs and jumps over the hedges for a hand out, in order to bail out his poorly run company, that's great, why the difference? He obviously can't run a business or manage money. Why burden the tax payer?
Seems that way. Seems they operate on a double standard too.
Please clarify what handout you are talking about. Unless, that is, you are just here to shout at the rain and tell us Orangeman bad. If that is the case, I'll kindly withdraw and let you carry on.
You're looking at it too simplistically, too binary if you will. It's not so black or white as you state. For instance, a business who is forced to close it's doors because of COVID via govt mandate, is not a failing business. There's an exogenous shock to the system which is not expected, and for which there is no clear end in sight. Because our system is built on the functioning of businesses to provide goods and services, to employ people, to act as counterparty to other related businesses etc, it's important to try and mitigate the damage. Just like we have unemployment insurance for those who lose their jobs similarly.
That's not to say that every small business should always be bailed out regardless of circumstance nor should anyone receive permanent unemployment benefits (in most cases). But if you are going to compare one individual and their network effects on the economy vs a small (or large business), the ramifications are far greater to more individuals for a business to go under vs a single individual employee losing their job (remember the business owner is also an individual as well, with personal expenses too). Plus it's much easier for skilled labor to find a new job than it is a business owner to start a whole new operation (typically).
That's not to say that every small business should always be bailed out regardless of circumstance nor should anyone receive permanent unemployment benefits (in most cases). But if you are going to compare one individual and their network effects on the economy vs a small (or large business), the ramifications are far greater to more individuals for a business to go under vs a single individual employee losing their job (remember the business owner is also an individual as well, with personal expenses too). Plus it's much easier for skilled labor to find a new job than it is a business owner to start a whole new operation (typically).
This is exactly where I was going once the OP clarified his position. If he is complaining about bailing out businesses that were forced by the government to close, and thereby forced by the government to go into financial straits, then why would you say that compensation for this action would be considered Socialism?
In OP's defense, he said nothing about COVID caused closures through government mandates. It's just easy & a bit lazy to make the connection due to current events.
One must ask however, if businesses remained open but the pandemic remains in full force, should we permit a socialist stance of bailing them out if people self-quarantine? Airlines and movie theaters are a prime example. It's easy to blame the government for imposing closures, but market conditions would've changed regardless of government mandates.
Democrats = Socialism for Individuals
Republicans = Socialism for Businesses
Numerous examples to prove this and the other hypocritically calls out the other regularly but they both have no problem with government intervention and handouts, it is just who they think should get it.
By the way it is not Socialism....all governments use tax payer revenues or government funding to pick and choose who they want to support from U.S. to Japan to Cuba to Russia.....they all do it.
Republicans = Socialism for Businesses
Numerous examples to prove this and the other hypocritically calls out the other regularly but they both have no problem with government intervention and handouts, it is just who they think should get it.
By the way it is not Socialism....all governments use tax payer revenues or government funding to pick and choose who they want to support from U.S. to Japan to Cuba to Russia.....they all do it.