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View Diary: The myth of the job creator (114 comments)

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  •  Small business "creating jobs" ... (2+ / 0-)
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    Larsstephens, salmo

    I owned (really small) small businesses since 1975 ...

    And I'll tell you:  taxes are what taxes are.  You "trim your sails" to take the best advantage of the tax code ... but you "chart your course" based on what you expect your sales and profits to be.

    If sales and profits are up ... you hire labor to meet demand and obtain profit.

    If sales and profits are down ...  you lay off workers or cut their hours.  A few percent one way or the other on your declared personal income is meaningless in that regard.

    •  Absolutely right (0+ / 0-)

      A business owner who isn't paying attention to demand is on his/her way to losing their business - it's actually quite simple.  

      •  And if we apply the "Small Business Model" to (0+ / 0-)

        discredit the Keynesian approach  to  Government deficit finances ... "

        Well, I'm not at all persuaded that household, small business and national finances have a lot in common except they all use the word "finances".  

        Still:  when times are hard, the small business that stops spending for advertising, inventory, and maintaining it's physical plant  -- that's the business whose owners have already calculated that "Chapter 11" may be better for them personally  than trying to "meet payroll."

        If "entrepreneurial spirit" really entitles us to a bigger slice of the pie than "diligent toil" ... then when times are hard (especially when interest rates are low) then we  SHOULD "assume risk" by "borrowing and spending" to increase our market share, if we possibly can.

        It's nothing like a sure-fire remedy ... but it sure beats "starving the beast" until the critter is no longer strong enough to pull its load -- like in the old Peasant Story "The Farmer and His Horse."

        Short version:  With his taxes up and the price of crops down, a farmer decided that he might be able to make ends meet by feeding his horse less.   So each day he reduced the beast's ration of grain by a little, so it would not notice the change.

        Asked by his neighbors how the new feeding scheme was working, the farmer replied: "It was working wonderfully well, you know -- until the stupid beast went and died on me."

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